Fresh uptrend rally possible
Further upward moment likely only after dismissal of 81,800 level, above which the market could move up till 82,000-82,300 level; On the flip side, below 81,135 level, we could intraday correction till 81,000-80,700
image for illustrative purpose
Mumbai: On Tuesday, the benchmark indices continued non-directional activity as BSE Sensex was up by 100 points. Among sectors, Energy index rallied over 1 per cent, whereas intraday profit booking were seen in selective Pharma and Healthcare stocks.
Technically, after intraday rally one more time market witnessed profit booking near 81.800, which is largely negative. In addition, on daily charts, it has formed small inside bar candle formation and on intraday charts, it has formed Double Top formation, which supports temporary weakness.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, the larger texture of the market is in to the positive side. However, fresh uptrend rally possible only after dismissal of 81,800, above which the market could move up till 82,000-82,300. On the flip side, below 81,135 level, we could see one quick intraday correction till 81,000-80,700.”
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Market has been trading with cautious optimism as valuations are quite rich, and any slight hiccup on the external front could trigger correction although domestic fundamentals remain buoyant.”
On Tuesday domestic indices like Sensex closed with marginal upside, as investors are opting cautious approach before FOMC meetings, Rupee traded slight negative on positive US Dollar ahead of FOMC meeting and trimming expectations of a rate cut by the US Federal Reserve, which brought positive sentiment in domestic and global market. “Weak crude oil prices may also support the market in upcoming secessions,” said Vaibhav Vidwani, research analyst, Bonanza Portfolio.
STOCK PICKS
Snowman Logistics| Buy | CMP: 85.33 | Stop-Loss: 81 | Target: 100
Snowman Logistics has broken past its swing high resistance of 84.90, closing above this level. The RSI is strong at 68.70, indicating solid momentum and potential for further gains. Given the current momentum and strength, we expect the stock to reach targets of 100 and higher, with a stop-loss set at 81.00 to manage risk effectively.
Tata Steel| Buy | CMP: 164.07 | Stop-Loss: 155 | Target: 172.50
Tata Steel has touched its trendline support mark of 156 on the daily charts and is maintaining above this level. With trading volumes nearly 1.5 times the 30-day average and an RSI (14) around 44.26, the stock is expected to gain momentum in the coming days. We anticipate potential targets of 172.50 and above, with a stop-loss set at 155 to manage risk effectively.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
