Further Upward Movement Likely

Mumbai: On Tuesday, the benchmark indices witnessed a sharp bounce back, with BSE Sensex going up by 1,397 points. Among sectors, almost all the major sectoral indices traded in positive territory, with the Oil and Gas and PSU Banks indices outperforming, gaining over two per cent.

Technically, after a gap-up opening, the market successfully cleared the 77,800-resistance zone, and post-breakout, the positive momentum intensified. Additionally, a bullish candle on the daily charts and an uptrend continuation formation on the intraday charts indicate further upward movement from the current levels.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that the current market texture is bullish, and ‘buy on intraday dips and sell on rallies’ would be the ideal strategy for day traders.”

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “For traders now, 78,100 and 77,800 would be the key support zones, while 78,700-78,900 could act as key resistance areas for the bulls.”

STOCK PICKS

VMM | TRADE-BUY | CMP: Rs125 | SL: Rs119 | TARGET: Rs140

The stock has given a strong breakout above its all-time high resistance mark with a sharp surge in volumes. A strict stoploss can be kept at Rs119 mark and we can see upside targets of Rs140 and above coming in over time. RSI (14) at 68 is indicating strong momentum conditions on the stock making it a good buy at current levels

ITC HOTELS | TRADE-BUY |CMP: Rs163.74| SL: Rs155 |TARGET: Rs200

The stock has successfully re-tested its anchor VWAP support mark of Rs165 and seeing good signs of pullback from those levels. With a sharp surge in volumes and the momentum being strong, limited data available with us on charts is telling that the stock is looking like a strong buy with strict SL of Rs155 for targets of Rs200 and above coming in

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