Bullish sentiment is likely to continue

Mumbai, June 05

Today, the benchmark indices continued their positive momentum. The Sensex was up by 444 points.

Among sectors, the Capital Market and Defense indices outperformed, rallying over 2 percent, whereas intraday profit booking was seen in selective PSU banks and media stocks.

Technically, on daily charts, the market has formed a reversal formation and is currently trading near the 20-day SMA (Simple Moving Average).

Shrikant Chouhan, Head - Equity Research, Kotak Securities says, “We believe that 81,000 would act as a key support zone for traders. As long as the market is trading above this level, the bullish sentiment is likely to continue.”

On the higher side, the market could move up to 24,900-25,000/82000-82200. However, a breakdown below 24,600/81000 could change the sentiment. Below this level, the market could retest the levels of 24,500–24,450/80700-80500.

Prashanth Tapse, Senior VP (Research), Mehta Equities says, “ .”

Stock Picks

360 ONE WAM Ltd (360ONE)

Buy at ₹1,074 | Stop Loss ₹1,035 | Target ₹1,140

360ONE has shown a fresh breakout above the ₹1,060–1,070 resistance zone, backed by increased trading volume. The stock is forming a strong bullish candle on the daily chart and has been maintaining a higher high–higher low structure over recent sessions. The RSI is hovering around 66, indicating solid bullish momentum without being overbought. It is also comfortably trading above its 20-day and 50-day moving averages, which supports the ongoing uptrend. If the momentum sustains, the stock could move towards ₹1,140 in the short term. Traders can consider buying on dips, keeping a stop loss at ₹1,035.

Mahanagar Gas Ltd (MGL)

Buy at ₹1,307 | Stop Loss ₹1,260 | Target ₹1,390

MGL has bounced back strongly from its recent support near ₹1,260 and is now approaching a key resistance area at ₹1,310–1,315. A breakout above this range, with supportive volume, could push the stock towards the ₹1,390 level. The Relative Strength Index (RSI) is currently around 64 and trending upward, which signals strengthening momentum. The stock is trading above its short-term moving averages and showing signs of fresh accumulation. As long as it holds above the ₹1,260 mark, the structure remains constructive for further upside. Short-term traders may look to ride the trend with a favorable risk-reward ratio.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.