Further uptrend possible from current levels

The benchmark indices witnessed a promising recovery from lower levels. The Sensex was up by 427 points. Among sectors, almost all the major sectoral indices registered a recovery from the lower levels, but the Capital Market index outperformed, rallying 2.70 per cent.

Technically, after an early morning intraday dip, the market took support near 84,150 and bounced back sharply, with the market rallying over 700 points from the day’s lowest point. Additionally, on daily charts, it has formed a bullish candle, indicating a further uptrend from the current levels.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We believe that 84,500 and 84,150 would act as key support zones. As long as the market is trading above these levels, the uptrend formation is likely to continue.

“On the higher side, 85,000 would act as an immediate resistance area for the bulls. A successful breakout above 85,000 could push the market up to 85,300-85,500. On the flip side, below 84,150 uptrend would become vulnerable.”

STOCK PICKS

Swan Energy | TRADE – BUY | CMP: Rs459.50 | SL: Rs445 | TARGETs: Rs472-Rs485

Swan Energy is showing steady bullish momentum with the stock forming higher lows and sustaining above short-term moving averages. The rebound from the Rs445 zone indicates strong demand at lower levels. RSI is trending upward, reflecting improving strength. A move above Rs462 may accelerate the rally toward Rs472 and Rs485. SL at Rs445.

Monte Carlo | TRADE – BUY | CMP: Rs706.85 | SL: Rs690 | TARGETs: Rs725-Rs745

Monte Carlo continues to maintain a positive structure with consistent buying on dips. The stock has respected its support around Rs690 and is exhibiting constructive price action. RSI is climbing steadily, signalling continuation of momentum. A breakout above Rs710 can open a move toward Rs725 and Rs745. SL placed at Rs690.

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