Short-Term Market Outlook Turns Bullish

Mumbai: On Tuesday, the benchmark indices witnessed a stellar rally, with BSE Sensex up by 1,131 points. Among sectors, all the major sectoral indices traded in positive territory, but the Capital Market, Media, and Realty indices outperformed, rallying over three per cent.

Technically, after a long consolidation, the market successfully surpassed the 74,500-resistance zone today, and following this breakout, positive momentum intensified.Additionally, the market is currently trading comfortably above the 20-day SMA (Simple Moving Average), which also indicates a further uptrend from current levels.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that the short-term market outlook is bullish; but for day traders, buying on intraday corrections and selling on rallies would be the ideal strategy.” In the near future, 75,000 and 74,500 will act as key support zones, while 75,600 and 75,800 could serve as profit-booking areas for day traders.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “The moderating inflation and uptick in GDP numbers failed to cheer investors, as markets ended weak in late selling pressure with mixed European and Asian cues coupled with FII selling dominating the mood.”

Investors are nervous about the likely imposition of tariffs on Indian goods by the Trump administration and its overall impact going ahead, hence caution with a negative bias could prevail for some more time.Prashanth added: “Buoyancy across global equities boosted the confidence of local investors which translated into value buying across the sectors.”

As markets were in a bearish mode over the past few weeks and valuations had become a bit attractive, investors seized opportunity in the beaten-down sectors. But the recovery would be difficult to hold on due to global challenges and fears of slowing domestic growth due to Trump’s threat to impose tariffs on key economies including India.

Vaibhav Vidwani, research analyst, Bonanza, said: “The Indian stock market closed on a positive note today, with the BSE Sensex experiencing significant gains. The Sensex surged by approximately 1,131 points to close at 75,301, marking a 1.53 per cent increase.”

STOCk PICKS

HDFC Bank| TRADE-BUY | CMP: Rs1,730 | SL: Rs1,700 | TARGET: Rs1,780

HDFC Bank is trading near a key support zone, indicating strong buying interest. The stock has shown steady accumulation, suggesting a potential breakout. A move above Rs1,740 could strengthen the bullish momentum, pushing it towards Rs1,780 levels. With the banking sector remaining positive, HDFC Bank is well-positioned for an uptrend. A strict stop loss at Rs1,700 should be maintained to limit downside risk.

Reliance Industries| TRADE-BUY | CMP: Rs1,238 | SL: Rs1,210 | TARGET: Rs1,280

Reliance Industries is rebounding from key support levels, indicating renewed strength. The stock has formed a strong base, suggesting further upside potential. A breakout above Rs1,250 could accelerate buying momentum, driving the stock towards Rs1,280 levels. With improving sentiment in energy and telecom sectors, Reliance remains a strong candidate for upside. A strict stop loss at Rs1,210 should be followed for risk management.

(Source: Mehta Securities)