Mkt Largely Positive For Short Term
A new uptrend may begin after surpassing 78,200, potentially reaching 78,500, with further potential at 79,200. Below 77,600, market may correct to 77,300-77,200
Mkt Largely Positive For Short Term
Mumbai: In the last session of the week, the benchmark indices witnessed volatile activity following a roller coaster ride. BSE Sensex gained 354 points. Among sectors, the Capital Market, Metal, and Pharma indices gained over three per cent. However, profit booking was seen in the FMCG index, which was the top loser, shedding over 5 percent. This was followed by the Defence and Realty indices, which dropped 4.25 and 3.5 per cent, respectively.
During the week, the market took support near the 20-day SMA (Simple Moving Average) and rebounded sharply. However, some profit booking was observed near the 50-day SMA or 23,800/78500.Technically, on daily charts, the market is holding a higher bottom formation and is currently trading above the 20-day SMA or 76,900, which is largely positive for the short term.
Amol Athawale of Kotak Securities, said: “We are of the view that the medium-term market texture is positive, but a fresh uptrend rally may be possible only after the dismissal of 78,200. Above this level, it could retest the 78,500 mark. Further upside may also continue, potentially lifting the index up to 79,200. On the downside, below 77,600, the market could extend the correction wave till 77,300-77,200.” The ongoing earnings have been mixed to subdued while relentless selling of domestic shares by the FIIs have prompted investors to take maintain caution.
STOCK PICKS
SBIN| TRADE-BUY | CMP: Rs737 | SL: Rs720 | TARGET: Rs785
The stock has recently tested its key trendline support near Rs737 and is showing early signs of a potential rebound. The price action on the daily chart suggests that if it holds above Rs720, it could witness an upward move toward 785. Despite the RSI (14) at 42 indicating sideways momentum, the current levels offer a strong risk-reward setup, making it a favourable buy opportunity.
HDFC Bank| TRADE-BUY | CMP: Rs1,732 | SL: Rs1,715 | TARGET: Rs1,800
The stock has successfully broken above its anchor VWAP resistance of Rs1,733 and managed to sustain above this level. With increasing volumes and steady strength, it appears well-positioned for an upward move toward Rs1,800. A strict stop-loss at Rs1,715 is recommended to manage risk effectively.
(Source: Riyank Arora, technical analyst at Mehta Equities)
