Larger market texture still in positive mode
For now, 79,300 and 79,000 would act as a key support zones while 80,400-80,700 could act as an important resistance areas.Below 79,000 traders may prefer to exit from long positions
image for illustrative purpose
Mumbai:On the last session of the week, the benchmark indices continued positive momentum, after a promising uptrend rally as NSE Nifty ends 1.25 per cent higher, while BSE Sensex was up over 1,350 points.
Among sectors, almost all the major sectoral indices were traded in to the positive territory, but IT index outperformed, rallied over four percent. During the week, the Sensex registered a fresh all time high of 80,392.64 points, but due to some profit booking at higher levels, it trimmed some gains.
Technically, on weekly charts, the index has formed bullish candle on intraday charts it is still holding higher high and higher low series formation, which is largely positive.
Amol Athawale, V-P (technical research), Kotak Securities, said: “We are of the view that the larger market texture is still into the positive side, but due to temporary overbought conditions we could see range bound activity in the near future. For the traders now, the 79,300 and 79,000 would act as a key support zones, while 80,400-80,700 could act as an important resistance areas.” However, below 79,000 traders may prefer to exit out from the trading long positions.
For Bank Nifty, the 52,000 would be the sacrosanct support level. As long as it is trading above the same, the bullish sentiment is likely to continue. On the higher side, the 53,500-53,800 could be the immediate resistance areas for traders.
“Markets were mostly range-bound and traded in the red for almost the entire trading session, as investors traded with caution ahead of the US non-farm payroll data which could give some indication on the interest rate direction going ahead. While the undertone remains bullish, investors are waiting for Budget and the road-map ahead to boost growth,” says Prashanth Tapse, senior V-P (research), Mehta Equities.
STOCK PICKS
Laurus Labs – Buy | CMP: 477.15| SL: 470 |Target: 500
Laurus Labs has demonstrated a strong breakout above its swing high resistance level of 471 and has successfully closed above this mark. With trading volumes surging to nearly five times the average of the last 30 days and the Relative Strength Index (RSI) at approximately 72 on the daily charts, the stock appears poised for a significant upward move toward 500 and beyond. A stop loss should be set at 470 to manage risk.
Aurobindo Pharma | CMP: 1,303.55 |SL: 1,280| Target: 1,350
Aurobindo Pharma has achieved a strong breakout above its all-time high resistance level of 1,292.10 and has closed well above this mark. With trading volumes nearly doubling the average of the last 30 days and the RSI surpassing 65 on the daily charts, the stock appears set for an upward move toward 1,350 and beyond. A stop loss should be maintained at 1,280 to effectively manage risk.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
