Bullish texture above 80,800 likely

Mumbai: In the last session of the week, the benchmark indices registered a fresh all-time high of 82,637 points, after a promising uptrend rally, BSE Sensex was up by 1,280 points. Among sectors, almost all the major sectoral indices were traded in to the positive territory, but IT, Reality and Pharma indices outperformed both the indices rallied over three per cent.

During the week, the Sensex successfully cleared the short-term resistance of 80,800 and post breakout the positive momentum intensified. Technically, it has formed bullish candle on weekly charts, and it is also holding higher bottom formation on intraday charts, which is largely positive.

Amol Athawale, V-P (technical research), Kotak Securities, said: “We are of the view that for the trend following traders, now 80,800 would act as a sacrosanct support zone. As long as market is trading above the same, the bullish texture is likely to continue.”

On the Higher side, the 82,800-83,300 would be the crucial resistance areas for the bulls. However, below 80,800 uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.

For Bank Nifty now, 50-day SMA (Simple Moving Average) or 51,550 would be the immediate resistance zone. Post 51,500 breakout, it could rally up to 52,000-52,500. On the other side, the 51,000 or 10-day SMA would be the key support zone. Below the same, the sentiment could change. Below which it could slip till 20 day SMA or 50,625 -50,500. “Benchmark indices scaled new highs in a positive trading session on the back of broad-based buying support, as hopes of a rate cut by the US Fed next month after last week’s Jackson Hole meeting has made investors more confident. However, caution may prevail and profit taking could make a comeback as the market has been on an upward march for the last 11 trading sessions,” says Prashanth Tapse, senior V-P (research), Mehta Equities.

Investors are now anticipating the newest domestic quarterly growth figures following an increase that followed US economic data alleviating concerns about growth. The initial public offering (IPO) of Ecos India Mobility and Hospitality saw strong demand as it approached the final day on August 30. Data from the stock exchange revealed that the subscription reached 42.22 times the issue size, with investors bidding for 53.19 crore equity shares compared to the 1.26 crore shares available,” says Vaibhav Vidwani, research analyst, Bonanza Portfolio.

STOCK PICKS

AU Bank | Buy: Rs690 | SL: Rs660 | Target: Rs720 and Rs750

AU Bank is poised for a potential upward movement, with the RSI reflecting strengthening momentum and volume patterns suggesting sustained accumulation. A strategic buy at Rs690 is recommended, aiming for upside targets of Rs720 and Rs750. The stock’s current momentum supports a favorable outlook, while a stop-loss at Rs660 is prudent to mitigate downside risk.

Shree Cement | Buy: Rs25,484 | SL: Rs25,100 | Target: Rs26,000 and Rs26,200

Shree Cement is exhibiting a strong bullish trajectory, as indicated by a rising RSI and increasing volumes that confirm the uptrend. A buy at Rs25,484 is advised, with targets set at Rs26,000 and Rs26,200, capitalizing on the stock’s positive momentum. A stop-loss at Rs25,100 should be implemented to safeguard against potential market corrections.

(Source_Riyank Arora Technical Analyst at Mehta Equities)