Pullback Formation May Continue Above 76,000

Mumbai: On Wednesday, the benchmark indices witnessed a recovery rally, with BSE Sensex up by 593 points. Among sectors, most of the major sectoral indices traded in positive territory, but the Re-alty index outperformed, rallying over 3.35 per cent.

Technically, on intraday charts, after a muted opening, the market found support near 76,000 and reversed. Following this reversal, it maintained positive momentum throughout the day. Ad-ditionally, it formed a bullish candle on daily charts, supporting a further uptrend.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that as long as the market is trading above 76,000, the pullback formation is likely to continue.” On the upside, it could move up to 77,000. A dismissal of 77,000 could push the market towards 77,500. Con-versely, if the market falls below 76,000, selling pressure may intensify, and it could slip to the 75,500-75,300 range.

Prashanth Tapse, senior V-P (research), Mehta Equities, says: “The market seems to be coming to terms about the outcome of Trump’s tariff policy decision. Hence, buying was evident across all the sectors.”

Post the clarity on tariff decision, the focus will then shift to fourth quarter earnings and the in-terest rate decision by the RBI next week.

Vaibhav Vidwani, Research Analyst at Bonanza said that the Indian stock market rebounded strongly on April 2, with the Sensex rising by 592.93 points to close at 76,617.44.

This upside was largely driven by a recovery in investor sentiment following sharp declines ear-lier in the week due to concerns over US President Donald Trump’s reciprocal tariffs. Despite initial fears, the market stabilized as investors reassessed the impact of these tariffs, focusing on sectors less directly affected.

IT stocks, which had been hit hard by tariff concerns, showed signs of recovery, contributing to the overall market rally. The rupee’s stability against the dollar also contributed positively, as it opened slightly lower but maintained its recent gains. As volatility remains high due to ongoing global uncertainties, investors are cautiously optimistic about future market movements, with key economic data releases expected to provide further insights into market trends.

STOCK PICKS

HDFC Bank

Buy | Entry: Rs1796 | SL: Rs1770 | Target: Rs1840

HDFC Bank is showing signs of stability near support levels, indicating potential for an upside move. A breakout above Rs1,805 could attract fresh buying, pushing the stock towards Rs1,840 levels. The banking sector remains strong, supporting the bullish outlook. A stop loss at Rs1,770 should be maintained to manage risk.

Reliance Industries

Buy | Entry: Rs1251 | SL: Rs1230 | Target: Rs1290

Reliance is holding well above its support zone, suggesting a rebound in the near term. A move beyond Rs1,260 could trigger fresh momentum, driving the stock towards Rs1,290 levels. With improving market sentiment, Reliance is positioned for further gains. A strict stop loss at Rs1,230 should be followed to control downside risk.

(Source: Mehta Securities)