Further Uptrend Likely

Mumbai: The benchmark indices bounced back sharply, with BSE Sensex was up by 1,006 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Defense and Oil and Gas indices outperformed, with defence up four per cent and oil and gas gaining 3 .14 per cent.

Technically, after a promising opening, the market maintained positive momentum throughout the day. Additionally, it formed a long bullish candle on the daily charts, which supports a further uptrend from current levels. Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that the short-term market texture is still on the bullish side, but buying on intraday dips and selling on rallies would be the ideal strategy for day traders.”

On the downside, the 79,800 and 79,500 would act as key support zones, while 80,500-80,700 could serve as crucial resistance areas for the bulls. However, if the market falls below 79,500, the uptrend would become vulnerable.

STOCK PICKS

State Bank of India (SBIN) | TRADE-BUY | CMP: Rs817 | SL: Rs800 | TARGETs: Rs835–Rs850

SBIN is showing good strength after finding support near Rs800 in recent trading sessions. The stock has been steadily moving higher and is now approaching a minor resistance near Rs820. A clear breakout above Rs820 can lead to a quick move towards Rs835 and Rs850. The overall trend remains positive, and the stock is trading above important moving averages, which supports further upside. Traders can consider buying around current levels or slightly lower, with a strict stop loss at Rs800 to limit risk.

Tata Motors | TRADE-BUY | CMP: Rs668 | SL: Rs650 | TARGETs: Rs685–Rs700

Tata Motors has bounced back smartly after testing support near Rs650. The stock is currently moving up in a strong trend and looks ready for another rally. A sustained move above Rs670 could trigger a rise towards Rs685 and Rs700 in the coming days. Volumes are improving, suggesting buyers are active at lower levels. The overall structure remains positive, and traders can look to buy now or on minor dips, with a stop loss placed at Rs650 to protect against any unexpected fall.

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