Further uptrend possible from current level

Mumbai, June 06

In the last week, the benchmark indices witnessed a promising rally. The Sensex was up by 737 points.

Among sectors, almost all the major sectoral indices were traded in to the positive territory but Capital Market and Reality indices outperformed, with the Capital Market rallied 9 per cent and Reality 9.6 per cent.

During the week, the market again took support near 80,600 and bounced back sharply. Technically, it has formed a double bottom reversal pattern on daily charts and is currently trading comfortably above the 20-day SMA (Simple Moving Average), which is largely positive. In addition, a long bullish candle has formed on weekly charts, supporting the possibility of further uptrend from the current levels.

“We believe that the 20-day SMA, around 81,600, will act as a trend decider level. As long as the market remains above this level, the bullish formation is likely to continue, with 82,600 serving as the immediate resistance zone for short-term traders. A successful breakout above 82,600 could push the market up to 83,500-83,900,” says Amol Athawale of Kotak Securities.

Conversely, if the market falls below 81,600, sentiment could change, and the market may retest the 80,600 level. Further downside could extend, potentially dragging the market down to 80,200.

Stock Picks

Walchandnagar Industries Ltd

Buy at ₹251 | Stop Loss ₹235 | Target ₹280

Walchandnagar Industries is showing strong upward momentum after a consolidation phase, and it has now broken above a key resistance zone near ₹245–₹250. The breakout is supported by strong volume, indicating fresh buying interest. The stock is also trading above its key moving averages, suggesting sustained strength. The RSI is around 67, showing healthy bullish momentum without being overbought. As long as it holds above ₹235, the stock could continue its upward move toward ₹280 in the short term. Traders can consider accumulating on minor intraday dips with a positive bias.

Housing and Urban Development Corporation Ltd (HUDCO)

Buy at ₹246 | Stop Loss ₹232 | Target ₹270

HUDCO has given a decisive breakout above the ₹240 mark, which acted as a major hurdle in previous sessions. The stock is trading with strong bullish sentiment, supported by rising volumes and a favorable technical structure. It is forming higher highs and trading comfortably above its 20-day and 50-day EMAs. The RSI is currently around 70, indicating strong momentum. If the stock sustains above ₹246, it is likely to head toward ₹270 in the near term. A stop loss below ₹232 is recommended to protect against any reversal. The trend remains strong, and short-term traders may consider buying on dips.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.