Further Uptrend Possible
Above 73,200, it could move up to 74,300-74,500. On the flip side, below 73,200, traders may prefer to exit their long positions
Further Uptrend Possible
Mumbai: On Wednesday, the benchmark indices bounced back sharply. BSE Sensex was up by 740 points. Among the sectors, all major sectoral indices traded in the green, with the Metal Index outperformed, rallied over four per cent.
Technically, after a long correction, the market successfully cleared the 73,200 resistance zone, and post-breakout, the positive momentum intensified. A long bullish candle and a promising reversal formation on the daily charts indicate a further uptrend from the current levels.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that as long as the market is trading above 73,200, the bullish sentiment is likely to continue.” On the higher side, it could move up to 74,300-74,500. On the flip side, if it falls below 73,200, the uptrend would be vulnerable. Below this level, traders may prefer to exit their long positions.
Also, local factors such as increase in February PMI index, a sharp fall in rupee, and downtrend in crude oil prices, triggered massive buying in the beaten-down technology, realty and telecom shares.
However, as the recovery remains fragile due to global uncertainty and FIIs showing no signs of halting the selloff trend, market could remain volatile going.
STOCK PICKS
Infosys (INFY)| TRADE-BUY | CMP: Rs1,690 | SL: Rs1,650 | TARGET: Rs1,750
Infosys is showing signs of recovery after holding above its key support level. The stock is forming a stable base, indicating potential upside. With RSI (14) at 47, suggesting moderate momentum, a stop-loss can be placed at 1,650, with an upside target of 1,750.
Maruti Suzuki| TRADE-BUY | CMP: Rs3,086 | SL: Rs3,000 | TARGET: Rs3,175
Maruti Suzuki is attempting to rebound after a recent decline, finding support at lower levels. The stock remains in a consolidation phase but could see a breakout if momentum strengthens. With RSI (14) at 34, indicating oversold conditions, a stop-loss can be placed at 3,000, with an upside target of 3,175.
(Source: Riyank Arora, technical analyst at Mehta Equities)
