Further uptrend possible from current levels

Mumbai:

Today, the benchmark indices continued their positive momentum, with the Sensex up by 1,205 points.

Among sectors, all the major sectoral indices traded in positive territory, but PSU Bank and Realty indices outperformed, rallying over 2.5 per cent. Technically, the market opened on a strong note and maintained positive strength throughout the day.

A long bullish candle on daily charts and the continuation of an uptrend formation on intraday charts indicate a further uptrend from the current levels.

“We are of the view that the market has completed one leg of the pullback move; therefore, buying on intraday corrections and selling on rallies would be the ideal strategy for traders,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

On the downside, 74,700 and 74,500 would act as key support zones, while 76,000-76,500 could be the crucial resistance areas for the bulls. However, below 74,500, the sentiment could change. If the index falls below this level, traders may prefer to exit their long positions.

STOCk PICKS

GODFREY PHILLIPS: Stock has shown a very strong volume Rs.722 Crores today, with a jump of 8%, in price, after forming a double bottom at Rs. 1875 area, pushing Daily RSI above 50 and MACD moving towards positive cross over & closing above SMA 20. Weekly structure still remains positive and 200 Weekly SMA

Long Term | BUY Aboce 2200 | STOP LOSS - 1821 | TARGET - 2581

SAMMAN CAPITAL LIMITED: It is showing very strong momentum with a jump of 20% in price from weekly low, within 2 days, closing today above all prominent SMA 20, 50 & 200, with RSI at 54 and positive crossover on MACD.

Short Term | BUY - 137 to 140 | STOP LOSS - 128 | TARGET - 154 - 157 - 161

(Source: Adib Noorani, Independent Market expert )