Pullback formation may continue

Mumbai: On Monday, the benchmark indices continued their pullback rally, with BSE Sensex rising by 319 points. Among sectors, IT and Défence indices outperformed, rallying over one per cent, whereas the Media index lost the most, shedding one per cent.

Technically, after a positive open, the market maintained positive momentum throughout the day. On daily charts, it has formed a bullish candle, and on intraday charts, it is holding a pullback wave.

“We are of the view that as long as the market trades above 83,200, the pullback formation is likely to continue,” says Shrikant Chouhan, head (equity research), Kotak Securities.

On the higher side, the 83,800 would be the immediate resistance zone for the bulls.

A successful breakout of 83,800 could push the market up to 84,200.

On the flip side, below 83,200, sentiment could change. If the market drops below this level, it could retest the levels of 83,000-82,700.

STOCK PICKS

BSE Ltd – Buy | CMP: Rs2,625 | SL: Rs2,550 | Target: Rs2,750 / Rs2,850

BSE Ltd continues to show strong bullish momentum, forming higher highs on the daily chart. The stock is supported by consistent volume activity, reflecting sustained investor confidence. A close above Rs2,625 could extend the rally toward Rs2,750 and Rs2,850 in the short term. Traders may buy on dips, keeping a stop-loss at Rs2,550 for effective risk management.

Angel One – Buy | CMP: Rs2,606 | SL: Rs2,550 | Target: Rs2,700 / Rs2,780

Angel One is trading in a firm uptrend, consolidating after a strong run-up. The stock remains above key short-term moving averages, indicating steady strength. RSI continues to trend positively, suggesting more upside ahead. Sustaining above Rs2,600 could take the stock toward Rs2,700 and Rs2,780. A stop-loss at Rs2,550 is recommended to protect gains.

(Source: Riyank Arora Technical Analyst at Mehta Equities)