Further Uptrend From Current Levels Possible

Mumbai: On Monday, the benchmark indices continued their positive momentum. The Sensex was up by 462 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Defense and IT indices outperformed, gaining over 1 percent.

Technically, after an early morning intraday rally, the market witnessed range-bound activity throughout the day. A bullish candle on daily charts and an uptrend continuation formation on intraday charts indicate a further uptrend from the current levels.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “For traders, 81,900 would act as a key support zone.” Above this bullish sentiment is likely to continue. On the higher side, 82,500-82,800 would act as key resistance areas for traders. However, below 81900, the market is likely to retest the levels of 81,600-81,500.

The market rally was broad-based, led by gains in Auto, Metal, and IT sectors. Key contributors included M&M, Bajaj Auto, JSW Steel, Nestle India, and financial heavyweights like ICICI Bank and HDFC Life, both hitting 52-week highs.

Vaibhav Vidwani, Research Analyst, Bonanza, said: “The upside momentum was driven by several positive triggers, India officially became the world’s fourth-largest economy by surpassing Japan, boosting investor confidence. Additionally, the early arrival of the monsoon season added to positive sentiment.”

STOCK PICKS

IPCA Labs | TRADE-BUY | CMP: Rs1,465 | SL: Rs1,425 | TARGETs: Rs1,520–Rs1,550

IPCA Labs has been forming a solid base around the Rs1,425–Rs1,450 zone and is now showing signs of upward movement. The stock has reclaimed important levels and is attracting fresh buying interest. A sustained move above Rs1,465 could lead to a quick rally toward Rs1,520 and then Rs1,550. The chart shows a clean breakout setup, and the risk-reward is favorable at current levels. Traders can consider buying now, with a stop loss at Rs1,425.

CCL Products | TRADE-BUY | CMP: Rs804 | SL: Rs780 | TARGETs: Rs840–Rs860

CCL Products has delivered a strong up-move recently and continues to show bullish momentum. After a short consolidation phase, the stock is again inching higher, suggesting that buyers are in control. Holding above Rs800 is key for continued momentum, and a move past Rs810 can quickly take it to Rs840 and beyond. The overall structure remains strong, and dips toward Rs790–Rs795 could offer a good buying opportunity. Stop loss should be kept at Rs780.

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