Further Uptrend Likely

Mumbai: In the last session of the week, the benchmark indices bounced back sharply, BSE Sensex was up by 1130 points.

Among sectors, all the major sectoral indices traded in positive territory, with the Defence and Metal indices gaining the most. The Defence Index gained 10.50 per cent, and the Metal Index rallied 9 percent. During the week, the Sensex slipped below the crucial level of 72,800.

However, it bounced back sharply. Technically, it has formed a reversal formation on both daily and weekly charts, supporting a further uptrend from the current levels. Additionally, a long bullish candle on the weekly charts and an uptrend continuation formation on intraday charts also support the uptrend.

Amol Athawale of Kotak Securities, said: “We are of the view that 74,000 and 73,700 would be key support zones for positional traders.” If the market succeeds in trading above these levels, it could bounce back to the 20-day SMA or 75,200. Further upside may continue, potentially lifting the indices up to 75,700. On the flip side, if the market falls below 73,700, the sentiment could change, and traders may prefer to exit their long positions.

As for the Bank Nifty, it is currently witnessing positive consolidation. For short-term traders, the double bottom support zone at 48,000 will act as a critical level. If it trades above this level, it could move up to the 50-day SMA, targeting 49,300 and 49,700. However, if it goes below 48,000, the uptrend would become vulnerable.

STOCK PICKS

Paytm (PAYTM)| TRADE-BUY | CMP: Rs684 | SL: Rs672 | TARGET: Rs725

Paytm is witnessing strong buying interest after bouncing from its support levels. The stock is showing signs of recovery, with increasing momentum and positive price action. With technical indicators favoring an upward move, a stop-loss can be placed at 672, with a potential target of 725.

Hindustan Petroleum | TRADE-BUY | CMP: Rs332.45 | SL: Rs324 | TARGET: Rs345

Hindustan Petroleum is trading in a bullish zone, holding firm above its key support level at 324. The stock has gained strength with a breakout attempt, indicating further upside potential. With a positive trend, a stop-loss can be placed at 324, with an expected target of 345.

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