Market Is Largely Positive; Forms Reversal
81,200 is key resistance zone, above which it may hit 82,200–82,600. Support exists at 80,900, below which traders may prefer to exit their long positions
Market Is Largely Positive; Forms Reversal
Mumbai: On Thursday, the benchmark indices witnessed a volatile trading session. After a roller-coaster activity, the Sensex was up by 320 points.
Among sectors, Metal, Reality, and Digital indices rallied over 1 percent, whereas intraday profit booking was seen in selective FMCG stocks. Technically, after an early morning intraday correction, the market took support near 81,100 and bounced back sharply. Additionally, on daily charts, it has formed a reversal formation near the 20-day SMA (Simple Moving Average), which is largely positive.
Shrikant Chouhan, Head - Equity Research, Kotak Securities says, “We are of the view that 81,200 and 80,900 would act as key support zones for traders. If the market sustains above these levels, the chances of hitting 82,200–82,600 would become brighter.” However, a break below 80,900 could change the sentiment. Below this level, traders may prefer to exit their long positions.
STOCK PICKS
Reliance Industries | TRADE-BUY | CMP: Rs1,417 | SL: Rs1,385 | TARGETs: Rs1,460–Rs1490
Reliance has taken support around Rs1,385 and is now gradually moving higher. The stock is trying to break past recent resistance levels and shows early signs of a potential uptrend. If it sustains above Rs1,415–Rs1420, a rally toward Rs1,460 and Rs1,490 could unfold in the coming sessions. The setup looks favorable with decent volume activity and price strength returning. Traders can consider buying now or on minor dips, with a stop loss at Rs1,385 for protection.
Bajaj Auto | TRADE-BUY | CMP: Rs8,874 | SL: Rs8,650 | TARGETs: Rs9,100–Rs9300
Bajaj Auto has shown strong recovery from lower levels and is maintaining its upward momentum. After a brief consolidation, the stock is moving back toward its recent highs. If it sustains above Rs8,850, it may head toward Rs9,100 and even Rs9,300 soon. The price pattern is bullish and suggests accumulation at current levels. Buying near Rs8,850–Rs8870 could offer a good opportunity, with a stop loss at Rs8,650 to limit downside risk.
(Source: Riyank Arora, technical
analyst at Mehta Equities)
