Further Uptrend Likely

Mumbai: On Monday, the benchmark indices witnessed a stellar rally. BSE Sensex was up by 2,975 points. Among sectors, all the major sectoral indices traded in positive territory, but the IT index gained the most, rallying 6.48 per cent.

Technically, after a gap-up opening, the market successfully cleared the 81,150 resistance mark, and post-breakout, positive momentum intensified. A long bullish candle on daily charts and breakout continuation formations on daily and intraday charts indicate a further uptrend from the current levels.

Shrikant Chouhan, head (equity research), said: “We believe that the 81,150 resistance zone has now become a strong support zone for short-term traders.”

For day traders, buying on intraday dips and selling on rallies would be the ideal strategy. On the higher side, 83,000-83,300 would be the key resistance areas, while below 24,590/81,150 traders may prefer to exit their long positions.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Markets were on a roll and turned buoyant after the news of a cease-fire between India and Pakistan, as that removes some kind of apprehension that was caused by last week’s tension between the two nuclear armed neighbours.”

Investors turned risk-on with safe-haven gold taking a beating, while equities turned out to be clear winners on the back of broad-based buying support. With talks on global tariff seen on a smooth path, equities could gain traction going ahead.

Vaibhav Vidwani, research analyst at Bonanza said that the ceasefire boosted investor confidence, leading to robust buying across sectors, particularly in defence stocks and banking, with notable gains in drone manufacturers and financial counters. Broad-based sectoral participation, led by Nifty Realty (up 5.93%) and defence-related stocks such as Ideaforge Technology and ZEN Technologies gaining 5-7% intraday.

STOCK PICKS

KPR Mill | BUY | CMP: Rs1180 | SL: Rs1145 | TARGETs: Rs1220–Rs1250

KPR Mill is showing strong upward momentum after finding solid support near Rs1145. The stock has been forming higher highs and higher lows, indicating sustained buying interest. If it holds above Rs1180 and crosses Rs1195, it could gain pace and move toward Rs1220 and Rs1250 in the short term. The chart pattern looks bullish, and any small dip near Rs1170–Rs1175 can be used as a buying opportunity. Traders should keep a stop loss at Rs1145 to manage downside risk.

Welspun Living | BUY | CMP: Rs150 | SL: Rs144 | TARGETs: Rs158–Rs165

Welspun Living has been consolidating in a tight range and is now showing signs of a breakout above Rs150. The stock has seen rising volume and steady price action, suggesting accumulation at lower levels. A sustained move above Rs151 could push it toward Rs158 and Rs165 in the coming days. The setup favors bulls, and traders can consider buying at current levels or on small dips, with a stop loss at Rs144.

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