Market, Largely Positive, But Enters Overbought Zone

Mumbai: On Monday, the benchmark indices continued positive momentum as BsE Sensex was up by 955 points. Among sectors, all the major sectoral indices were traded in to the positive territory, but PSU Bank index outperformed, rallied over four per cent. Technically, after an gap-up opening entire day market comfortably trading above 20 day SMA (Simple Moving average) or 79,000 level, which is largely positive.

Shrikant Chouhan of Kotak Securities, said: “We are of the view that, the intraday market texture is bullish, but due to temporary overbought conditions we could see range bound activity in the near future.”

For the day traders now, buy on intraday correction and sell on rallies would be the ideal strategy. As per the levels, 79,000 and 79,400 would be the key supports zones, while 80,500-80,900 could act as crucial resistance areas for the bulls. However, below 79,000 level, the up-trend would be vulnerable.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “The relief rally backed by robust short covering ahead of the monthly expiry this week continued for a second straight session as benchmark Sensex breached the psychological 80k mark on all-round buying support.” The enthusiasm after the Maharashtra Assembly election win by the BJP & its allies gave equity markets a major boost on expectations that infrastructure projects would get a fresh leg up going ahead. The sharp fall in the rupee could turn positive for domestic equity markets going ahead as any further appreciation in local currency could reverse the ongoing FII fund outflows.

STOCK PICKS

Siemens| TRADE-BUY | CMP: Rs7,348 | SL: Rs7,175 | TARGET: Rs7,600

Siemens has displayed a breakout above the critical resistance at the 7,227 anchor VWAP level, supported by a sharp surge in volumes. This move confirms strong buying interest and a continuation of bullish momentum. The RSI indicates robust strength, aligning with the breakout and signalling further upside potential. The stock is well-positioned for a rally, with the breakout level acting as a reliable support zone.

Indraprastha Gas Ltd (IGL)|TRADE-BUY | CMP: Rs324 | SL: Rs314 | TARGET: Rs350

IGL has bounced back strongly from its major support zone at Rs320, showcasing consistent buying interest at lower levels. The volume pattern reflects a potential reversal, with technical indicators like RSI confirming improved momentum. The stock’s recovery from support suggests bullish sentiment, positioning it for a short-term rally towards its target.

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