Further Uptrend Likely

Mumbai: On the last day of the January F&O series, the market maintained positive momentum, with BSE Sensex was up by 227 points. Among the sectors, the Defence index was the top gainer, rallying over 2 percent, whereas the Media and IT indices shed more than one per cent.

Technically, after a promising pullback rally, the market is holding an uptrend continuation formation, which is largely positive. A bullish candle on the daily charts and a higher bottom formation on the intraday charts indicate further uptrend potential from the current levels.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “For trend-following traders, 76,400 would be the key support level. Above this level, the pullback formation is likely to continue.” On the upside, it could bounce back to 77,000-77,200. Conversely, if it falls below 76,400, the uptrend would be vulnerable. Below this level, traders may prefer to exit their long positions.

The Indian stock market closed on a positive note with the BSE Sensex gaining 226.85 points, or 0.30 per cent, to finish at 76,759.81.This upward trend marked the third consecutive day of gains for the indices. Vaibhav Vidwani, Research Analyst, Bonanza, said: “That despite the overall positive performance, certain sectors faced pressure. Notably, the auto and IT sectors struggled, with Tata Motors experiencing a significant decline of approximately 7.37 per cent, reflecting ongoing concerns over its quarterly results and market position.”

Meanwhile, Power Grid Corporation and ONGC emerged as top gainers, contributing positively to the indices. Market sentiment was influenced by global cues following the US Federal Reserve’s decision to maintain interest rates steady amidst mixed economic signals. This led to a cautious yet optimistic trading environment as investors assessed potential opportunities in light of recent market corrections.