Further Uptrend Possible From Current Levels

Mumbai: In the last session of the 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.

Amol Athawale of Kotak Securities, said: “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.” 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 | TRADE-BUY: Rs251 | SL: Rs235 | TARGET: Rs280

Walchandnagar Industries is showing strong upward momentum after a consolidation phase, and it has now broken above a key resistance zone near Rs245–Rs250. 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 Rs235, the stock could continue its upward move toward Rs280 in the short term. Traders can consider accumulating on minor intraday dips with a positive bias.

HUDCO| TRADE-BUY: Rs246 | SL: Rs232 | TARGET: Rs270

HUDCO has given a decisive breakout above the Rs240 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 Rs246, it is likely to head toward Rs270 in the near term. A stop loss below Rs232 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)