Investors cautious amid bullish tone

Mumbai: On Tuesday, the benchmark indices continued positive momentum as BSE Sensex was up by 378 points. Among sectors, Banking and Financial stocks registered buying interest whereas intraday profit booking were seen selective FMCG and Media stocks.

Technically, after positive opening entire day market comfortably trade above 80,600 resistance mark, which is largely positive. In addition, intraday charts it is holding higher high and higher low series formation, which supports further uptrend from the current levels. We are of the view that the larger market texture is bullish, but buying on dips and sell on rallies would be the ideal strategy for the day traders.

“For day traders now, the 80,600 and 80,300 are the key support zones, while 81,000 and 81,200 would be the crucial resistance areas,” says Shrikant Chouhan, head (equity research), Kotak Securities.

However, below 80,300 level, traders may prefer to exit out from the trading long positions.

“Investors are hoping that Fed Chair Jerome Powell’s speech at the Jackson Hole conference this Friday could throw some hint at a rate cut next month. Hence, investors are placing steady bullish bets with a cautious approach,” said Prashanth Tapse, senior V-P (research), Mehta Equities.

Domestic market closed on positive note. “The session began positively, but remained range-bound throughout the day. IT and Banking stocks performed well, contributing to the Nifty’s gains. Overall, the market breadth remained positive, indicating potential for selective buying in outperforming sectors. The IT sector, led by companies like TCS and Infosys, managed to stay afloat, reflecting ongoing demand for technology services”, said Vaibhav Vidwani, research analyst, Bonanza Portfolio.

STOCK PICKS

Indus Tower | Buy: Rs 428.30 | SL: Rs419 | Target: Rs 452.50

Indus Tower has achieved a breakout above the AVWAP resistance mark of Rs427, with the RSI (14) at 59 indicating strong momentum. The overall increase in trading volumes is a positive signal of strength. A strict stop loss at Rs419 should be maintained to manage risk, with potential upside targets of Rs452.50 and beyond.

Godrej Properties | Buy: Rs2,978.65 | SL: Rs2,888 | Target: Rs3,055

Godrej Properties has touched the trendline support near Rs2,890, with the RSI (14) at 46 showing a minor uptick, reflecting underlying strength. A strict stop loss at Rs2,888 should be adhered to, aiming for an upside target of Rs3,055. The spike in trading volumes further confirms strong momentum in the stock.

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

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