Markets largely positive

Today, the benchmark indices continued their positive momentum, with the Sensex rising by 787 points. Among sectors, the Consumer, PSU Banks, and Reality indices rallied over 2 per cent, whereas the Oil & Gas index was the top loser, shedding over 1.30 per cent.

Technically, after a muted open, the market found support near 72,700 and reversed sharply. On daily charts, it has formed a bullish candle, and on intraday charts, it is holding a higher bottom formation, which is largely positive.

“We are of the view that the market has completed one leg of the pullback move; hence, buying on intraday corrections and selling on rallies would be the ideal strategy for day traders,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

We consider 73,500 and 72,700 as key support zones for traders, while 74,500 and 75,000 could act as crucial resistance levels, he said. However, if the index falls below 72,700, the uptrend may become vulnerable. In such a scenario, traders may prefer to exit their long positions.

STOCK PICKS

SUPREME PETROCHEM LIMITED

Buy Above - 751 | Stop Loss - 709 |

Target - 791 - 801 - 811

With a strong break out on daily charts, it has come to retest the demand area with price above all its important averages 20, 50, 100, 200. RSI above 60 & MACD with positive crossover in the positive territory, the stock seems very bullish.

ADANI POWER LIMITED

Buy Above - 159-161 | Stop Loss - 155.90 |

Target - 791 - 164.90 - 166.90

It is trading above 5 months high with a strong gap up followed by a strong move, sustaining above all its prominent SMA 20, 50, 100 & 200. RSI above 65 and MACD rising high strongly in the positive territory.

(Source: Independent Market expert, Adib Noorani)