Further uptrend possible

Mumbai: The benchmark indices continued their positive momentum for the fourth day in a row, with BSE Sensex rising by 899 points. Among sectors, all the major sectoral indices traded in positive territory, but the Defence, Oil, and Gas indices outperformed, with both indices rallying over 1.5 per cent.

Technically, the market successfully cleared the 50-day SMA (Simple Moving Average) level and the 75,700 resistance zone, which is largely positive. Additionally, it formed a bullish candle on daily charts, supporting a further uptrend from the current levels.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that the overall market sentiment is bullish, but buying on dips and selling on rallies would be the ideal strategy for day traders. In the near future, 76,000 and 75,700 or (the 50-day SMA) will be key support zones, while 76,500 and 76,800 could serve as key resistance areas for day traders.”

However, if the market falls below 75,700, sentiment could change. Below this level, traders may prefer to exit their long positions.

Vaibhav Vidwani, research analyst, Bonanza, said: “The rally was largely driven by positive global cues following the US Federal Reserve’s decision to maintain interest rates, coupled with expectations of potential rate cuts later in the year.”

The IT sector led the charge, with major players like TCS, Infosys, and Wipro posting gains, contributing to the Sensex’s rise. Other sectors such as Auto and FMCG also saw notable increases. Overall, the market’s performance was buoyed by both domestic and international factors, setting a positive tone for future sessions.

STOCK PICKS

Jindal Saw| TRADE-BUY | CMP: Rs283 | SL: Rs275 | TARGET: Rs300

Jindal Saw is showing strong bullish momentum, holding well above key support levels. The stock has been witnessing steady accumulation, indicating potential for further upside. A breakout above Rs290 could drive momentum, taking it towards Rs300 levels. With the metal sector performing well, Jindal Saw remains a strong buy candidate. A strict stop loss at Rs275 should be maintained to manage risk.

Havells India| TRADE-BUY | CMP: Rs1,501 | SL: Rs1,475 | TARGET: Rs1,550

Havells has bounced from strong support levels, signalling a continuation of its uptrend. The stock is trading near a key breakout zone, suggesting further bullish momentum. A move above Rs1,520 could strengthen buying interest, pushing it towards Rs1,550 level. With the consumer durable sector remaining strong, Havells is well-positioned for an upward move. A strict stop loss at Rs1,475 should be followed for risk management.

(Source: Mehta Securities)