Further uptrend possible from current levels

Mumbai: The benchmark indices witnessed profit booking at higher levels. The Sensex was down by 322 points. Among sectors, the Reality and Defence indices outperformed, rallying over 2 per cent, whereas the IT index lost the most, shedding over 1.5 per cent.

Technically, after an early morning intraday rally due to profit booking at higher levels, the market corrected sharply.

However, the short-term market outlook remains positive. Additionally, on daily and intraday charts, the market is holding a higher bottom formation that also supports a further uptrend from the current levels.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We are of the view that 85,200 and 85,000 remain key support zones. As long as the market is trading above these levels, the bullish sentiment is likely to continue.

“On the higher side, 85,700 and 85,850 are immediate resistance zones for the bulls. However, below 85,000, the uptrend could become vulnerable. The intraday market texture is volatile; hence, level-based trading would be the ideal strategy for day traders.”

STOCK PICKS

CSB Bank | TRADE – BUY | CMP: Rs566.15 | SL: Rs540 | TARGETs: Rs600-Rs630

CSB Bank has delivered a strong breakout with heavy volume participation, indicating fresh accumulation. The stock has moved decisively above its earlier resistance zone and is trading in a higher-high, higher-low structure. Momentum indicators are firmly bullish, suggesting continuation of the uptrend. Any dip toward Rs550–555 may attract buying interest. A sustained move above Rs575 can push the stock toward Rs600 and Rs630. Maintain SL at Rs540.

Gandhar Oil | TRADE – BUY | CMP: Rs169.10 | SL: Rs160 | TARGETs: Rs178-Rs185

Gandhar Oil is showing strong follow-through buying after breaking out of a consolidation range. The stock is holding above its short-term averages, reflecting strength in price action. RSI remains in the bullish zone, indicating momentum continuation. A move above Rs172 can accelerate the upside toward Rs178 and Rs185. Traders may hold long positions with a stop-loss at Rs160.

(Source: Riyank Arora,

technical analyst at Mehta Equities)