Mkt May Correct And Retest Previous Resistance Levels

Mumbai: On Wednesday, the market surpassed all significant levels, driven by positive sentiment across various asset classes worldwide. The potential verdict for Mr Trump boosted US stock futures, leading to short covering in other markets. The Sensex indices managed to cross 80,000 levels, which propelled the market towards 80,300. From a technical perspective, if the market remains above 80,000, we may see levels of 80,900-81,200 in the near future. However, if the market fails to sustain above 80,300, it could correct and retest the previous resistance levels, which were at 79,700-79,400.

Shrikant Chouhan, Head-Equity Research, Kotak Securities, said: “It’s advisable not to make any purchases. Furthermore, the Bank-Nifty is currently in a trading range, and unless the 52,600 levels are broken, we are likely to see range-bound activity.”

The feel good factor of Trump’s win in the US election had a rub-off effect on world equity markets, including local indices as domestic investors resorted to value buying, especially in IT stocks, which pushed the benchmark Sensex above the 80k mark.

Prashanth Tapse, Senior VP-Research, Mehta Equities, said: “The market is hoping that the new regime will not hurt the HIB visa rules, leading to a rally in the recently beaten-down IT stocks. However, investors remain skeptical about the recovery, as there has been no let-up in FII selling in the domestic equity market .”

The Indian stock market experienced a robust rally today, with the Sensex surging by 901 points (1.13%) to close at 80,378

Vaibhav Vidwani, Research Analyst, Bonanza, said: “This upward momentum was largely driven by significant gains in IT stocks, reflecting positive investor sentiment amid potential victory of Trump in US election. Foreign institutional investors selling shares, domestic institutional investors buying, indicating strong local support for the market.”

STOCK PICKS

Naukri (Info Edge) | TRADE-BUY: Rs7997 | SL: Rs7775 | TARGETS: Rs8100 and Rs8200

Info Edge is exhibiting robust support around Rs7775, with buying interest observed at lower levels. The stock is trending positively, with volume indicators suggesting accumulation by investors. A buy entry at Rs7997 is recommended, aiming for a gradual move toward Rs8200, provided the stock holds above its immediate support. This setup offers a favorable risk-reward ratio, suitable for near-term gains.

Tata Communications| TRADE-BUY: Rs1809 | SL: Rs1780 | TARGET: Rs1875

Tata Communications is showing promising technical strength near the Rs1780 support zone, which has held consistently. The current level of Rs1809 presents a good entry opportunity, with upward momentum expected as it targets Rs1875. Strong buyer activity and positive momentum indicators support this position, making it a viable choice for short-term gains while maintaining the stop-loss to manage downside risk effectively.

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