Short-term market outlook is positive

Mumbai: The benchmark indices continued their positive momentum. The Sensex was up by 313 points. Among sectors, the PSU Bank Index outperformed, rallying over 2.60 percent, whereas consumer and selective Metal stocks registered intraday profit booking at higher levels.

Technically, after a promising opening, the entire day witnessed range-bound activity. However, the short-term market outlook remains positive.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We believe that 82,500 and 82,200 are key support zones for trend-following traders. As long as the market trades above these levels, the uptrend is likely to continue.

“On the higher side, the index could move up to 83,000-83,200. Conversely, below 82,200, traders may consider exiting their long positions.”

STOCK PICKS

IFCI | TRADE–BUY | CMP: Rs58.99 | SL: Rs56 | TARGETs: Rs64-Rs68

IFCI is trading with strong bullish momentum, supported by consistent volumes. The stock has been forming higher highs and is holding above short-term moving averages. RSI is pointing upward, suggesting continued strength. Sustaining above Rs58.99 could drive the stock toward Rs64 and Rs68. A stop-loss at Rs56 is advised to manage risk effectively.

Sigachi | TRADE–BUY | CMP: Rs44.28 | SL: Rs42 | TARGETs: Rs48-Rs52

Sigachi has shown signs of accumulation near recent lows and is now moving higher with improved volumes. The stock is sustaining above its support zone and short-term moving averages, indicating strength. RSI is recovering, which supports the bullish outlook. A sustained move above Rs44.28 may take the stock toward Rs48 and Rs52. Traders can keep a stop-loss at Rs42 to protect against volatility.

(Source: Riyank Arora Technical Analyst at Mehta Equities)