Further upward movement possible from current levels

Mumbai: The benchmark indices witnessed a promising uptrend rally. The Sensex was up by 595 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Auto index outperformed, rallying over 1.5 per cent.

Technically, after a muted open, the market surpassed the 82,000 resistance mark, and post-breakout, positive momentum intensified.

A long bullish candle on daily charts and an uptrend continuation pattern on intraday charts indicate further upward movement from the current levels.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We are of the view that as long as the market is trading above 82,000 the bullish sentiment is likely to continue. “On the higher side, it could move up to 82,800, with further upside potential that may lift the index to 83,100. On the flip side, below 82,000, the sentiment could change. If the market falls below this level, traders may consider exiting their long positions.”

The current market texture is bullish but buying on intraday dips and selling on rallies would be the ideal strategy for day traders.

STOCK PICKS

Mazagon Dock | TRADE-BUY | CMP: Rs2,946 | SL: Rs2,860 | TARGET: Rs3,100

Mazagon Dock is trading firm above Rs2,900 levels, showing resilience despite recent volatility. Sustaining above its support at Rs2,860 may push the stock towards Rs3,100. Strong momentum and healthy demand favour a bullish outlook, making dips attractive for accumulation.

Aadhar Housing | TRADE-BUY | CMP: Rs540 | SL: Rs520 | TARGET: Rs580

Aadhar Housing is holding steady at Rs540, with key support near Rs520. The stock is gaining traction, backed by improving volumes and positive sentiment in the housing finance sector. A breakout above current levels can accelerate the move towards 580 in the short term.

(Source: Riyank Arora Technical Analyst at Mehta Equities)