Short-Term Outlook Remains Bullish

Mumbai: On Tuesday, the benchmark indices witnessed a modest recovery from lower levels, with BSE Sensex up by 13 points. Among sectors, the Realty index outperformed, rallying by 3.75 per cent, while the Private Banks and Capital Market indices shed over one per cent.

Technically, in the backdrop of weak global sentiment, our market opened with a gap down; however, due to buying interest at lower levels, it recovered sharply.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that as long as the market is trading above 73,700, the short-term outlook remains bullish.” On the higher side, it could retest the levels of 74,500-74,700. Conversely, if it falls below 73,700, the sentiment could change. Below this level, traders may prefer to exit their long positions.

Prashanth Tapse, senior V-P, (research), Mehta Equities, said: “Markets ended mixed in a choppy trading session with benchmark Nifty erasing its losses towards close due to selective buying. Weakness in Asian and US markets indices kept the mood cautious, while strong foreign fund outflows coupled with volatile currency and global economic uncertainty continue to make investors risk averse.”

Rajesh Sinha, research analyst, Bonanza said: “Sensex ended at 74,102, marking a 0.02 per cent decline. Despite these minor setbacks, certain stocks performed well, with Sun Pharma, ICICI Bank, and Bharti Airtel being among the top gainers in both indices. However, IndusInd Bank faced significant losses, plummeting by 25 per cent and hitting a 52-week low, alongside. The market’s cautious stance was influenced by global economic concerns, particularly fears of a US recession, which led to significant declines in US markets overnight.”

STOCK PICKS

Zomato| TRADE-BUY | CMP: Rs208 | SL: Rs200 | Target: Rs225

Zomato has bounced back from a strong support zone, indicating renewed buying interest. The stock is showing positive momentum, supported by improving volumes and a steady uptrend. A move above 210 could trigger further bullishness, pushing it towards 225 levels. RSI (14) is at 36, suggesting the stock is recovering from lower levels with room for further upside. A strict stop loss at 200 should be maintained to manage risk.

Paytm| TRADE-BUY | CMP: Rs713 | SL: Rs695 | TARGET: Rs750

Paytm continues to show signs of strength, with its price action indicating a breakout attempt. The stock has gained momentum after holding key support levels, supported by a MACD positive crossover. RSI (14) is at 44, signalling improving bullish sentiment and potential for further upside. If the uptrend sustains, the stock has the potential to move towards 750 levels in the short term. A strict stop loss at 695 should be followed for risk management.

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