Next resistance likely at all-time-high of 25,078pts
For now, 81,300 would be trend decider level, above which market could rally till 82,000-82,600; On the flip side, below 81,300 level, traders may prefer to exit from long positions
Mumbai: On Monday, the benchmark indices witnessed promising uptrend rally as BSE Sensex was up by 612 points. Among sectors, IT and Digital indices outperformed rallied over one per cent whereas intraday profit booking were seen in selective PSU banks and healthcare stocks.
Technically, on the backdrop of positive global sentiments, our market opened with a positive note and after robust opening throughout the day, it maintained positive momentum. In addition, on daily charts, it has formed uptrend continuation formation and on intraday charts, it is holding higher bottom formation, which supports further uptrend from the current levels.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “For the trend following traders now, 81,300 would be the trend decider level. Above the same, the market could continue the positive momentum till 82,000-82,600. On the flip side, below 81,300 level, uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.”
Optimism was the order of the day as Dovish statements by the Fed Chair last week sparked positivity across the globe and also at Dalal Street. Markets shrugged off the recent sluggish trading sessions, as the US Fed chairperson last week pointing towards a likely rate cut fuelled a major rally that saw Nifty close above the crucial 25k mark. While simmering tension in West Asia may continue to keep investors on the edge, India, relatively better off compared to other major economies, could continue to attract investor flows in the medium term.
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Benchmark Nifty is seen in top gear on backdrop of bullish candles on daily charts with next major hurdles at its all-time-high at 25,078.30 mark. The index has support at 24,500 mark and then all eyes will be on the biggest make-or-break support at 24205 mark.”
STOCK PICKS
Hindalco Industries | Buy:Rs711 | SL: Rs700 | Target: Rs750
Hindalco Industries is exhibiting strong bullish momentum, bolstered by increasing volumes. The stock is on track for a continued upward trend towards the target of Rs750. Any potential pullback should be managed with a strict stop loss at Rs700, ensuring a cautious approach, while capitalizing on the stock’s momentum.
ICICI Bank | Buy: Rs1,213 | SL: Rs1,190 | Target: Rs1,250
ICICI Bank has demonstrated a solid upward movement, with momentum supported by rising volumes. The stock is well-positioned for a rally towards the targets of Rs1,250. A strict stop loss at Rs1,190 is advised to mitigate any downside risk, while allowing for potential gains.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
