Further uptrend possible
Breakout continuation formation on intraday charts is indicating further upward move; For now, 80,500 would be the key support level, above which market could continue till 81,000-81,200; On the flip side, below 24,500/80,500 uptrend would be vulnerable
image for illustrative purpose
Mumbai: The benchmark indices continued positive momentum as BSE Sensex was up by 146 points. Among sectors, PSU Banks index outperformed rallied over three per cent whereas selective IT stocks witnessed intraday profit booking at higher levels.
Technically, after a gap-up opening market held the positive momentum throughout the day. Breakout continuation formation on intraday charts is indicating further uptrend from the current levels. Shrikant Chouhan, head (equity research), Kotak Securities, said: “For the trend following traders now, the 80,500 would be the key support level. Above the same, the market could continue uptrend momentum till 81,000-81,200.” On the flip side, below 24500/80500 uptrend would be vulnerable.
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Investors are adopting a selective buying approach with just over a week’s time left for the Budget, as the market has already run up sharply over the past few weeks in hopes of a strong reform-oriented Budget. Global cues will also dictate trends, and investors would be watchful of the geo-political tensions and the Fed’s statement on rate cuts.”
Vaibhav Vidwani, research analyst at Bonanza Portfolio, said that “Sensex was up, as it hit 80,700 mark. The bull rally is largely seen due to companies reporting good quarterly results with slight movement due to pre-budget optimism. In the upcoming Union Budget, expectation changes in the tax structure for Oil and Gas companies, brought optimism in Nifty Oil and Gas.”
STOCK PICKS
GAIL | CMP: 236.50 | SL: 233.50 | TARGET: 242 -244
The stock has shown a bullish trend with a breakout above its recent swing high resistance mark of 235 and has managed to close above this level. With the price movement supported by increased trading volumes and the RSI (14) on the daily time frame being around 69, the momentum conditions for the stock look favorable. We can see potential targets of 242 to 244, with a stop loss set at the 233.50 mark.
Shriram Finance | CMP: 2,882 | SL: 2,860 | TARGET: 2,910 - 2,920
The stock has exhibited strong performance, breaking above its swing high resistance mark of 2,870 and closing above it. The price surge is backed by rising volumes, and the RSI (14) on the daily time frame at around 60 indicates positive momentum. We anticipate upside targets of 2,910 to 2,920, with a strict stop loss at the 2,860 mark.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss) / All prices in Rs
