Bullish sentiment is likely to continue

Mumbai, Sep 18

The market rally continues, with the Nifty ending 93 points higher, while the Sensex was up by 320 points. Among sectors, Pharma and Healthcare indices gained over 1 percent, whereas intraday profit booking was seen in selective Defence stocks. Technically, after a gap-up open, the market witnessed some selling pressure at higher levels. However, the short-term outlook remains positive.

For day traders, the higher bottom support is placed near 82,700.

“We are of the view that as long as the market trades above this level, the bullish sentiment is likely to continue,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

On the higher side, 83,300 would act as an immediate resistance zone for the bulls. A successful breakout above 83,300 could push the market up to 83,500-83,600.

On the flip side, if the market falls below 82,700, the uptrend would become vulnerable. Below this level, traders may prefer to exit their long positions.

Stock Picks

Urban Company – Buy | CMP: ₹170 | SL: ₹162 | Target: ₹182 / ₹190

Urban Company is showing steady strength after consolidating around support levels. The stock is holding above its short-term averages, supported by improving volumes. RSI is trending upward, reflecting fresh buying interest. Sustaining above ₹170 can push the stock toward ₹182 and ₹190 in the near term. A stop-loss at ₹162 is advised to manage risk effectively.

Sigachi – Buy | CMP: ₹43 | SL: ₹40 | Target: ₹48 / ₹52

Sigachi has formed a base near support levels and is now moving higher with improving momentum. The stock is trading above its immediate support zone and showing positive RSI signals. Sustaining above ₹43 could trigger further upside toward ₹48 and ₹52. Fresh long positions can be considered with a stop-loss at ₹40 to protect against volatility.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.