Market Still Largely Positive

Mumbai: On Tuesday, the benchmark indices witnessed promising rally. BSE Sensex was up by 344 points. Among sectors, almost all the major sectoral indices registered buying interest at lower levels, but Media Index outperformed rallied over 2.5 per cent.

Technically, after early morning intraday correction, the market took the support near 81,400 and reversed sharply. Post reversal, it witnessed a promising uptrend rally. However, it trimmed some gains from the day’s highest level of 82,196, but eventually managed closed above 81,800 mark, which is largely positive.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that market completed one leg of pullback rally and now 81,800 would be the crucial support level for traders. Above 81,800, it could bounce back up to 82,200-82,500. However, below 81,800 level, the market could retest the level of 81,500. Further downside may also continue which could drag the index till 81,300.”

Vaibhav Vidwani, research analyst, Bonanza Portfolio, said: “Today, the domestic market closed on positive note, both the major indices Nifty and Sensex closed up by 0.46 per cent and 0.44 per cent at 25,041 and 81,921. In Monday’s GST council meeting, council reduced tax on cancer medicine which supported pharma sector whereas expectation of 50 bps rate decline by Fed brought optimism in IT stocks.

However, IREDA was up by 4.63 per cent on the back of the company signed a Memorandum of Understanding (MoU) with SJVN, GMR Energy, and their associated companies for the development and implementation of the 900 MW Upper Karnali hydro-electric project in Nepal.”

STOCK PICKS

The Indian Hotels Co Ltd | Buy: Rs680.35 | SL: Rs670 | Target: Rs695 - Rs700+

The Indian Hotels Co Ltd has successfully broken out above the key resistance level of Rs673.50, showing strong momentum. The stock is currently holding well above this level, indicating sustained buying interest. With an upward trajectory, the immediate targets are Rs695 and Rs700+. A strict stop loss at Rs670 is recommended to manage risk, making it a favorable buying opportunity.

Laurus Labs | Buy: Rs516 | SL: Rs494 | Target: Rs532.50 - Rs540+

Laurus Labs has broken out above the crucial resistance of Rs501.30, showing a strong upward momentum. The stock is consistently holding above this breakout level, indicating sustained buying pressure. With targets set at Rs532.50 and Rs540+, the trend remains favorable for continued gains. A strict stop loss at Rs494 is recommended to manage downside risk, providing a solid risk-reward setup for investors.

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

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