Market is largely positive

The benchmark indices witnessed range-bound activity. The Sensex was up by 40 points. Among sectors, the Reality index outperformed today, rallied 2.40 per cent, whereas intraday profit booking was seen in selective auto and IT stocks at higher levels.

Technically, after a correction, the market has formed an intraday reversal pattern. Additionally, on daily charts, it has formed a small bullish candle, which is largely positive.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “For day traders, 83,700 and 83,500 would act as key support zones. As long as the market trades above these levels, a pullback formation is likely to continue, with the index potentially moving up to 84,300.

“Further upside may also persist, which could lift the index to 84,700. On the flip side, below 83,500, the uptrend would become vulnerable. If the market falls below this level, the chances of hitting 83,200 would increase.”

STOCK PICKS

JK Tyre | TRADE – BUY | CMP: Rs442 | SL: Rs420 | TARGETs: Rs470- Rs485

JK Tyre continues to trade in a strong uptrend after breaking out from a key resistance zone near Rs430. The stock is witnessing steady volume accumulation and higher-top, higher-bottom formations on the daily chart. Momentum indicators such as RSI remain firmly in the bullish territory, suggesting further upside potential toward Rs470 and Rs485. A stop-loss at Rs420 is advised for traders to manage risk effectively.

CEAT Ltd | TRADE – BUY | CMP: Rs4,028 | SL: Rs3,950 | TARGETs: Rs4,200-Rs4,350

CEAT Ltd maintains a bullish structure on the charts with consistent follow-through buying interest. The stock has sustained above its crucial short-term averages, confirming strength in the trend. RSI and volume trends are supportive, indicating potential for continued momentum. Holding above Rs4,000 could lead to upside toward Rs4,200 and Rs4,350. Stop-loss recommended at Rs3,950.

(Source: Riyank Arora Technical Analyst at Mehta Equities)