Charts Indicating Further Uptrend

Mumbai: The benchmark indices closed lower in the last session of the week. However, Sensex and Nifty continued positive momentum as BSE benchmark index was up by 1,030 points for the week. Among sectors, almost all the major sectoral indices were traded into the positive territory, but Metal and Auto indices outperformed. Metal index rallied 7 per cent and Auto index was up by 4.5 per cent.

During the week, after a positive consolidation market successfully cleared 85,000 resistance mark and post breakout positive momentum intensified. Technically, a bullish candle on weekly charts and uptrend continuation formation on daily and intraday charts indicating further uptrend from the current levels.

Amol Athawale, VP-Technical Research, Kotak Securities, said: “We are of the view that, the current market texture is bullish, but buying on dips and sell on rallies would be the ideal strategy for the short-term traders.” For the traders now, 85,300 and 85,000 would act as a key support zones, while 85,900-86,300 would act as crucial resistance areas for the bulls. However, below 85,000 the sentiment could change. Below the same, traders may prefer to exit out from the trading long positions.

Prashanth Tapse, Senior VP (Research), Mehta Equities says, “After benchmark indices scaled fresh all-time highs in initial trades, investors turned cautious ahead of the key US inflation data and resorted to profit taking in banking, realty and power stocks which saw markets snap 2-day gains. Weak Asian market cues too weighed on the sentiment. However, as the market undertone has been bullish amid robust fund flows, gains in metals, oil & gas and auto shares helped indices erase some of its losses to close off their lows.”

Vaibhav Vidwani of Bonanza Portfolio, said: “The Indian stock market experienced a mixed session today. The BSE Sensex closed down by 264 points, settling at 85,571, while the Nifty 50 was down by 37 points, ending at 26,178. This reflects ongoing volatility as investors reacted to global cues, particularly from Asia and the US, where markets showed resilience amid stimulus measures from China.

STOCK PICKS

Polycab India| CMP: Rs7,054 | SL: Rs6,700 | Targets: Rs7,400, Rs7,600

Polycab India has completed a breakout from a consolidation phase, signalling strong upward momentum. The stock finds key support at Rs6,844, making it an attractive entry point. A notable volume increase and bullish RSI suggest further gains, with targets of Rs7,400 and Rs7,600.

Exide Industries | CMP: Rs497 | SL: Rs454 | Targets: Rs520/ Rs560

Exide Industries has broken past its trendline resistance at Rs478.50, confirming a strong breakout. With major support at Rs454.00, the stock shows a favorable risk-to-reward ratio. Rising RSI and volumes back its potential to hit short-term targets of Rs520 and Rs560.

(Source: Riyank Arora, technical analyst at Mehta Equities)

CMP (Current Market Price); SL (Stop Loss)/All prices in Rs