Market Is Largely Positive

Mumbai: On Thursday, the benchmark indices witnessed a recovery from lower levels, with the Sensex up by 318 points. Among sectors, the PSU Bank index was the top gainer, it rallied 2.4 per cent, while the Auto index lost the most and shed 1 per cent. Technically, after a muted open, the market bounced back sharply. On daily charts, it has formed a bullish candle, which is largely positive.

Shrikant Chouhan, Head-Equity Research, Kotak Securities, said: “We are of the view that 77,100 would be the key support zone for day traders.” As long as it is trading above this level, the bullish formation is likely to continue. On the higher side, 78,000 and 78,200 would act as key resistance areas for traders. Conversely, a dismissal of 77,100 could change the sentiment. Below this level, the market could slip to 76,800-76,500.

Vaibhav Vidwani, Research Analyst, Bonanza, said: “Indian stock market closed on a strong note, with the Sensex rising by approximately 317 points. This uptrend was observed despite initial volatility and concerns over the US tariffs on auto imports, which affected sectors like auto and pharma negatively.” The upside in the market can be attributed to several factors, including the return of FIIs as net buyers. Over the past five sessions, FIIs have purchased shares worth over Rs 21,377 Cr, marking a significant shift in sentiment after months of net selling.

Additionally, the Nifty’s P/E ratio has become more attractive, standing at 21.04 times as of March 25, compared to its five-year average of 24.80 times. This, combined with positive domestic fundamentals and the easing of liquidity conditions, has contributed to the market’s resilience and potential for further gains.

STOCK PICKS

Gujarat Gas | TRADE-BUY | CMP: Rs410 | SL: Rs400 | TARGET: Rs430

Gujarat Gas is trading near a key support zone, indicating strong buying interest at lower levels. The stock is showing early signs of a rebound, and if it sustains above Rs415, it could gain further momentum. With improving sentiment in the energy sector, Rs430 looks achievable in the short term. A stop loss at Rs400 should be maintained to manage risk.

Jindal Saw | TRADE-BUY | CMP: Rs272 | SL: Rs265 | TARGET: Rs290

Jindal Saw has been consolidating and is now attempting a breakout above Rs275, which could trigger a strong move towards Rs290. The stock is witnessing strong accumulation, supported by rising volumes. If the momentum sustains, an upward rally is expected. A strict stop loss at Rs265 should be followed to limit downside risks.

(Source: Mehta Securities)