Short-term outlook is positive

Mumbai: The benchmark indices witnessed profit booking at higher levels. The Sensex was up by 12 points. Among sectors, the Infra index was up by 0.50 per cent, whereas the Défense and Digital index lost the most, shed nearly 1 per cent.

Technically, after a promising uptrend rally, the market witnessed some profit booking at higher levels. However, the short-term outlook remains positive. For traders, the 20-day SMA (Simple Moving Average) at 84,200 would act as a crucial support zone.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “As long as the market is trading above this level, the bullish momentum is likely to continue. On the higher side, 85,000 would act as an immediate resistance zone for the bulls.

A successful breakout above 85,000 could push the market up to 85,300. “On the flip side, if the market falls below the 20-day SMA at 84,200, it is likely to retest the levels of 84,000-83,700.”

STOCK PICKS

Hindalco | TRADE – BUY | CMP: Rs811 | SL: Rs785 | TARGETs: Rs850-Rs870

Hindalco is trading with a positive bias, showing consistent strength above its key support zone near Rs785. The stock has formed a higher-low pattern on the daily chart, indicating trend continuation. RSI is trending upward, signaling healthy momentum. A sustained move above Rs815 could push prices toward Rs850 and Rs870. Traders can consider buying on dips while maintaining a stop-loss at Rs785.

ICICI Bank | TRADE – BUY | CMP: Rs1,385 | SL: Rs1,350 | TARGET: Rs1,440-Rs1,460

ICICI Bank continues to maintain a strong structure, comfortably trading above its short-term moving averages. The stock is witnessing steady accumulation, with RSI confirming bullish momentum. A decisive close above Rs1,390 could trigger a move toward Rs1,440 and Rs1,460. Traders should look to buy on minor declines, keeping a stop-loss at Rs1,350 for effective risk management.

(Source: Riyank Arora Technical Analyst at Mehta Equities)