Further Uptrend Possible
80,500 and 80,200 would be key support zones, above which it could move up to 81,500-81,700. However, if it falls below 80,200, traders may prefer to exit from long positions
Further Uptrend Possible
Mumbai: On Tuesday, the benchmark indices extended their positive momentum as BSE Sensex up by 598 points. Among sectors, PSU Banks and Media indices rallied over two per cent, while intraday profit booking was observed in selective FMCG and Pharma stocks.
Technically, the indices managed to close above the 80,500 resistance level, which is largely positive. Additionally, a bullish candle has formed on the daily charts, and a higher bottom formation is evident on the intraday charts, supporting a further uptrend from current levels.
Shrikant Chouhan of Kotak Securities, said: “For day traders, 80,500 and 24,250/80,200 would be key support zones. As long as the indices are trading above these levels, the bullish sentiment is likely to continue.” On the higher side, the market could move up to 81,500-81,700. However, if it falls below 80,200, traders may prefer to exit their long positions.
Prashanth Tapse, Senior VP-Research, Mehta Equities, said: “The bull run at Dalal Street extended for the third consecutive session, with Nifty rising by 181 points to 24,457 and Sensex gaining 598 points to 80,846. 41.”
Among top gainers were Adani Ports (+5.86%) and NTPC (+2.65%), while Bharti Airtel (-1.50%) and Hero MotoCorp (-1.10%) led the losers. The market now focuses on the upcoming RBI monetary policy and US non-farm payroll data.
STOCK PICKS
Federal Bank | TRADE-BUY | CMP: Rs209.80 | SL: Rs200.00 | Target: Rs225.00
Federal Bank has achieved a strong breakout above its swing high resistance at Rs209 and is currently retracing to the resistance-turned-support zone. With RSI (14) at 57 and reduced volumes during the pullback, the stock is poised for further upside toward Rs225.00. A stop-loss at Rs200.00 is advised for effective risk management.
Infosys | TRADE-BUY | CMP: Rs1,890 | SL: Rs1,830 | TARGET: Rs2,000
Infosys is demonstrating strong upward momentum after breaking out of its consolidation zone at Rs1,875. The stock exhibits a clear pattern of higher highs and higher lows, indicating a bullish trend. With RSI (14) at 53 and rising volumes, the stock is well-positioned to reach Rs2,000. A stop-loss at Rs1,830 is recommended to limit potential downside.
(Source: Riyank Arora, technical analyst at Mehta Equities)
