Intraday Charts Indicating Further Uptrend

Mumbai

On Thursday, the benchmark indices registered a fresh all time high of 83,116.19 points. After a stellar rally, BSE Sensex was up by 1,440 points. Among sectors, all the major sectoral indices were traded in to the positive territory, but Metal and Infra and Auto indices gained over two per cent.

Technically, after a gap-up opening, the market successfully cleared 82,200-resistance zone and post breakout, it intensified positive momentum. A long bullish candle on daily charts and a breakout continuation formation on intraday charts are indicating further uptrend from the current levels.

“We are of the view that, the current market texture is bullish, but buying on intraday correction and sell on rallies would be the ideal strategy for the day traders. For the day traders, the 82,700 and 82,500 would act as a key support zones, while 83,300-83,600 would be the key resistance areas for the bulls. However, below 82,500 uptrend would be vulnerable,” says Shrikant Chouhan, head (equity research), Kotak Securities.

The Indian stock market closed at record highs today, with the BSE Sensex touched the 83,000 mark for the first time.

“The market sentiment was buoyed by positive global cues, with Asian markets trading higher due to, as per expected CPI data reported in US at 2.5 per cent and expectation of declined inflation in India brought optimism in domestic market. Nifty Auto was one of top sectorial performing indices as Union Cabinet approved the PM E-Drive scheme with an outlay of Rs10,900 crore for two years to boost the adoption of electric vehicles (EVs) in India,” says Vaibhav Vidwani, research analyst, Bonanza Portfolio.

Across the board buying support lifted benchmark Sensex to fresh record highs as falling US bond yields and expectations of a rate cut by the US Federal Reserve in next week’s policy meeting fuelled massive optimism.

“Although the US CPI data may not be encouraging for aggressive rate cuts, recent economic readings showed the economy could be facing challenges going ahead, and hence the Fed may go for a rate cut. With retail money continuing to flow in despite concerns of stretched valuations in local markets, investors remain upbeat about India’s resilient economy in a slowing global economy,” says Prashanth Tapse, Senior VP (Research), Mehta Equities.

STOCK PICKS

Precision Camshafts Ltd (PRECAM)

PRECAM is exhibiting strong upward momentum, with the stock trading near a key support level of Rs 250. A buy recommendation at Rs 262 is advised, targeting Rs 280 and Rs 300, supported by favorable technical indicators. The stock’s price action suggests a potential breakout towards these higher levels, making it a viable opportunity for short-term gains. A stop loss at Rs 250 will help mitigate downside risk, ensuring capital protection in case of unexpected volatility.

Shriram Properties Ltd

Shriram Properties is showing steady accumulation with an upward trajectory, supported by healthy volumes. A buy at Rs 132 is recommended, with near-term targets of Rs 145 and Rs 150, as the stock is poised to benefit from ongoing positive sentiment in the real estate sector. The stop loss at Rs 125 will provide a safety buffer against any downside, while the potential upside offers an attractive risk-reward ratio for short-term traders.

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

CMP (Current Market Price); SL (Stop Loss)/All prices in Rs