Market Bias Turns Largely Positive

Mumbai: In the last session of the week, the benchmark indices bounced back sharply as BSE Sensex was up by 1535 points. Among sectors, Reality index outperformed rallied over six per cent whereas Oil Gas, Energy and Media indices shed over one per cent.

Technically, after a long correction the market took the support near 76,800 and reversed. Post reversal it not only cleared 200 day SMA (Simple Moving Average), but also succeeds to close above the same which is largely positive.

Amol Athawale, V-P (technical research), Kotak Securities, said: “We are of the view that as long as the market is trading above 200 day SMA or 77,500 the pullback formation is likely to continue. On the higher side, it could move up to 79,400-79,900.” On the flip side, below 77,500 the sentiment could change. Below the same, traders may prefer to exit out from the trading long positions.

Markets witnessed a major relief rally on across-the-board buying as benchmark indices surged over two per cent ahead of the poll results in two states on Saturday. The exit polls hinting at BJP winning in both the states seemed to have boosted investors’ sentiment in a big way and shrugged off the alleged bribery charges against the Adani group.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Also, many of the stocks are now looking relatively attractive, especially after the relentless selloff over past few weeks due to dismal Q2 earnings and unabated FII fund outflows, and hence the reversal of trend.”

STOCK PICKS

Tata Motors| TRADE-BUY | CMP: Rs791 | SL: Rs770 | TARGET: Rs850

Tata Motors has shown strong accumulation near its immediate support at 775, coupled with a positive crossover in key technical indicators like the RSI and MACD. The stock has also breached its short-term resistance level, indicating a fresh breakout. Sustained buying momentum and increasing volumes suggest a potential upside, making it an ideal candidate for short-term gains.

Infosys| TRADE-BUY | CMP: Rs1,902 | SL: Rs1,850 | TARGET: Rs1,990

Infosys has rebounded from its important moving average levels, supported by strong demand at lower levels. The RSI indicates bullish divergence, and the stock has formed a higher high-higher low pattern, confirming a reversal. With steady volume growth and positive sentiment in the IT sector, Infosys is well-positioned for a rally in the coming sessions.

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