Further uptrend possible from current levels

The benchmark indices bounced back sharply, with the Sensex was up by 567 points. Among sectors, PSU Banks index outperformed, rallied 2.76 per cent, whereas despite strong market sentiment, intraday profit booking was seen in Défense and Media stocks. Technically, the week opening was positive; after a gap-up open, the market maintained its positive momentum throughout the day.

“A bullish candle on daily charts and a reversal formation on intraday charts indicate a further uptrend from the current levels,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

For day traders, 84,500 would act as an immediate support zone. As long as the market trades above this level, the bullish sentiment is likely to continue. On the higher side, it could retest the levels of 85,000-85,300. On the flip side, below 84,500, we could see a quick intraday correction down to 84,200-84,000.

STOCK PICKS

JK Tyre | TRADE – BUY | CMP: Rs412 | SL: Rs395 | TARGETs: Rs440-Rs455

JK Tyre continues to display strong momentum after breaking out from its consolidation range. The stock is trading above key moving averages with increasing volumes, indicating steady institutional participation. RSI remains in the positive zone, suggesting further strength ahead. Sustaining above Rs412 could lead to targets of Rs440 and Rs455. Traders may hold long positions with a stop-loss at Rs395 to manage risk effectively.

CEAT Ltd | TRADE – BUY | CMP: Rs4,052 | SL: Rs3,950 | TARGETs: Rs4,250-Rs4,400

CEAT Ltd has been forming higher highs and higher lows, showing sustained bullish sentiment in the auto ancillary space. The stock’s breakout above Rs4,000 marks a continuation of its strong uptrend. Momentum indicators remain supportive with healthy volume action. Holding above Rs4,052 could take it toward Rs4,250 and Rs4,400. A stop-loss at Rs3,950 is recommended to protect profits.

(Source_Riyank Arora Technical Analyst at Mehta Equities)