Market Remains Largely Positive

Mumbai: On Monday, the benchmark indices continued their positive momentum, BSE Sensex was up by 855 points. Among sectors, almost all major sectoral indices traded in positive territory, but the Capital Market index outperformed, rallying 4.70 per cent.

Technically, after a positive open, the market successfully cleared the 79,000 mark and also surpassed the 200-day SMA (Simple Moving Average) mark, which is largely positive.“We believe that the short-term market texture is bullish but may be overbought; hence, we could see some profit booking at higher levels”, says Shrikant Chouhan, Head Equity Research, Kotak Securities.

For traders, the 79,700-80,000 range would act as key resistance areas, while 79,000 and 78,700 could serve as crucial support zones. For day traders, as long as the market is trading above 78,700, buying on intraday corrections and selling on rallies would be the ideal strategy. However, if it falls below 78,700, sentiment could change, and traders may prefer to exit their long positions.

Vaibhav Vidwani, a research analyst, said that the Indian stock market closed on higher note, with the Sensex rising about 855 points (1.09%) to 79,408 and the Nifty50 gaining 273 points (1.15%) to 24,125, extending a robust five-day rally that could be the strongest since February 2021.

The Bank Nifty led the gains, surging nearly 1.87 per cent to 55,304, driven by strong Q4 earnings from major private sector banks. Key sectors fuelling the upside included banking, IT, and asset management companies (AMCs), with HDFC AMC shares rallying 5.73 per cent after steady quarterly results. JSW Steel gained over 2.66 per cent following the National Green Tribunal clearing its environmental compliance case.

STOCK PICKS

Marico | TRADE-BUY | CMP: Rs698 | SL: Rs682 | TARGET: Rs715–Rs730

Marico is showing signs of bullish reversal after a healthy pullback near the Rs680–Rs685 support zone. The price has reclaimed short-term moving averages, and RSI is bouncing back from oversold territory, indicating momentum buildup. A sustained move above Rs700 can trigger a quick rally toward Rs715 and Rs730 levels. Volume is also starting to pick up, suggesting renewed buying interest. This setup offers a good risk-reward opportunity—buying on dips is advisable with a strict stop loss below Rs682.

Varun Beverages (VBL) | TRADE-BUY | CMP: Rs544 | SL: Rs528 | TARGET: Rs560–Rs575

VBL has formed a strong base near Rs530 and is showing bullish intent with improving price action. The stock is attempting to break out of a consolidation range, and indicators like RSI and MACD are tilting positive. A breakout above Rs545 can lead to a swift move towards Rs560 and Rs575 in the short term. Accumulation near support and rising volumes make it an attractive buy with a stop loss at Rs528. Traders can look for entries on minor dips.

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