Market is largely positive

Mumbai: In the last session of a truncated week, the benchmark indices witnessed a recovery from lower levels. The Sensex was up by 780 points. Among sectors, almost all major sectoral indices registered buying interest at lower levels, but PSU Bank and Metal indices outperformed, PSU Bank gained 4.45, Metal index rallied 3.90 per cent. During the week, the market took support near 80,200 and bounced back sharply.

Technically, on daily charts, it has formed a promising reversal pattern, and on weekly charts, it formed a small bullish candle, which is largely positive.

Amol Athawale of Kotak Securities, said: “We believe that 80,800-80,200 will act as key support zones in the near future. Above this range, the pullback formation is likely to continue on the higher side, potentially moving up to the 20-day SMA (Simple Moving Average) or 81,400. Further upside may also continue, which could lift the market up to 81,900. “On the flip side, below 80,200, sentiment could turn negative. Traders may prefer to exit long positions if the index falls below this level.”

STOCK PICKS

Shyam Metalics | TRADE – BUY | CMP: Rs970 | SL: Rs940 | TARGETs: Rs1,020-Rs1,060

Shyam Metalics is witnessing strong accumulation near Rs970 and is trading above key support zones. The broader price structure remains positive, with momentum indicators pointing toward further upside. Sustaining above Rs970 could open a move toward Rs1,020 and Rs1,060. A stop-loss at Rs940 is recommended to manage downside risks.

Avalon Technologies | TRADE – BUY | CMP: Rs1,055 | SL: Rs1,020 | TARGETs: Rs1,120-Rs1,160

Avalon Technologies is consolidating around its short-term moving averages, showing signs of renewed buying interest. The stock has a strong base near Rs1,020, while RSI is trending positively. Sustaining above Rs1,055 may trigger a move toward Rs1,120 and Rs1,160. Traders should maintain a stop-loss at Rs1,020 to protect capital.

(Source: Riyank Arora Technical Analyst at Mehta Equities)