Further uptrend from the current levels likely

Mumbai: The benchmark indices bounced back sharply. The Sensex was up by 513 points. Among sectors, the IT index outperformed today, rallying 3 per cent, whereas despite strong market momentum, some profit booking was seen in selective Realty, Oil and Gas stocks.

Technically, after the bounce back, the market not only crossed the 85,000 resistance mark but also succeeded in closing above it, which is largely positive. Additionally, it formed a bullish candle on the daily charts, supporting further uptrend from the current levels.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “For day traders, 85,000 and 84,700 would be the key support zones. As long as the market trades above these levels, the bullish momentum is likely to continue. “On the higher side, 85,500 would be the immediate resistance zone for the bulls. A successful breakout above 85,500 could push the market up to 85,800-86,000. On the flip side, if the market drops below 84,700, the uptrend could become vulnerable.”

STOCK PICKS

HCL Tech | TRADE – BUY | CMP: Rs1,662.60 | SL: Rs1,630 | TARGETs: Rs1,705-Rs1,735

HCL Tech is trading firmly above its near-term moving averages, showing sustained strength. The stock has formed a higher-low pattern, signalling bullish continuation. RSI is steadily rising, indicating improving momentum. A breakout above Rs1,675 can push the stock toward Rs1,705 and Rs1,735. Maintain SL at Rs1,630.

Infosys | TRADE – BUY | CMP: Rs1,541.10 | SL: Rs1,505 | TARGETs: Rs1,585-Rs1,610

Infosys is gaining strength after a constructive consolidation phase. Price action shows strong support near Rs1,505, and the stock is attempting to cross its immediate resistance zone. RSI is moving upward, reflecting improving buying pressure. A sustained move above Rs1,550 may open the path to Rs1,585 and Rs1,610. SL at Rs1,505.

(Source: Riyank Arora Technical Analyst at Mehta Equities)