Further Uptrend Possible Afrom The Current Levels

Mumbai: On Monday, the benchmark indices witnessed positive momentum, with the Nifty ends 142 points higher while the Sensex was up by 454 points. Among sectors, the Private Bank index gained over 2 per cent, whereas intraday profit booking was seen in auto and selective FMCG stocks.

Technically, after an early morning intraday correction, the market took support at 76,600 and bounced back sharply. On daily and intraday charts, it has formed a higher bottom formation, which supports a further uptrend from the current levels.

Shrikant Chouhan, Head-Equity Research, Kotak Securities, said: “We are of the view that 76,600 will act as a key support zone for day traders. If it sustains above this level, it could bounce back to 77,300-77,500. However, if it falls below 76,600, the uptrend would be vulner-able. Below this level, traders may prefer to exit their long positions.”

Prashanth Tapse, Senior VP-Research, Mehta Equities, said: “While it was just a sentimental im-pact, the undertone continues to be of uncertainty marked with extreme volatility. Local inves-tors will be more focused on the Union Budget to be announced on February 1 and what measures would FM take to address the ongoing slowdown and Trump’s trade policies.”

Optimism across most of the Asian and European markets ahead of Trump taking charge as the US President today weighed positively on Indian benchmarks as well, with banking and telecom stocks leading the recovery. While it was just a sentimental impact, the undertone continues to be of uncertainty marked with extreme volatility. Local investors will be more focused on the Union Budget to be announced on February 1 and what measures would FM take to address the ongoing slowdown and Trump’s trade policies.

STOCK PICKS

Max Healthcare |TRADE-BUY | CMP: Rs1064 | SL: Rs1008 | TARGET: Rs1100

The stock has touched strong trendline support mark of 1010 and managed to hold well above the same. Overhead resistance is looking to be near 1100 levels which are looking to be the achieveable targets for the stock. Strong technical structure supported by momentum indicators are showing good potential upside in the stock from current levels.

Bajaj Finance | TRADE-BUY | CMP: Rs7440 | SL: Rs7300 | TARGET: Rs7600

The stock has given a strong breakout above its swing high resistance mark of 7388 and man-aging to hold well above the same. With price making new highs and showing strong signs of momentum and strength, the stock looks all set for an upside move towards 7600 and above. A set stoploss should be kept near 7300 mark to manage risk well.

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