Market is largely positive

Mumbai: In the last session of the week, the benchmark indices witnessed a roller-coaster activity. The Sensex was down by 5 points.

Among sectors, the IT index outperformed, rallying 3.30 per cent. During the week, the market registered profit booking at higher levels.

However, after a short-term correction, it found support near the 20-day SMA (Simple Moving Average), and on last Friday, it bounced back sharply. Technically, on daily charts, it has formed a promising reversal pattern and is currently trading comfortably above the 20-day SMA, which is largely positive.

Amol Athawale of Kotak Securities, said: “For positional traders, 85,000 and 84,700 would act as key support zones.

As long as the market is trading above these levels, the bullish sentiment is likely to continue.

“On the higher side, 85,900 would serve as an immediate resistance level for the bulls. A successful breakout above 85,900 could push the market up to 86,500. Conversely, a breach below 84,700 could change the sentiment. Below this level, the index could retest the levels of 84,200-84,000.”

STOCK PICKS

Protean | TRADE – BUY | CMP: Rs780 | SL: Rs755 | TARGETs: Rs805-Rs830

Protean is witnessing a mild pullback but continues to hold its key support around Rs755. The stock is forming a higher-base structure, showing steady accumulation. RSI remains in a stable zone, hinting at a possible bounce. A move above Rs790 may trigger upside toward Rs805 and Rs830. Maintain SL at Rs755.

HEG | TRADE – BUY | CMP: Rs520.50 | SL: Rs508 | TARGETs: Rs536-Rs548

HEG is consolidating near its short-term support at Rs508, showing signs of stabilisation despite minor declines. The stock maintains a constructive pattern, and momentum indicators are flattening, suggesting a potential reversal. A breakout above Rs525 can lift the stock toward Rs536 and Rs548. SL at Rs508.

(Source: Riyank Arora, technical analyst at Mehta Equities)