Further uptrend from the current levels

Mumbai, Nov 19

Today, the benchmark indices bounced back sharply. The Sensex was up by 513 points. Among sectors, the IT index outperformed today, rallying 3 per cent, whereas despite strong market momentum, some profit booking was seen in selective Realty, Oil and Gas stocks.

Technically, after the bounce back, the market not only crossed the 85,000 resistance mark but also succeeded in closing above it, which is largely positive. Additionally, it formed a bullish candle on the daily charts, supporting further uptrend from the current levels.

“For day traders, 85,000 and 84,700 would be the key support zones,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

As long as the market trades above these levels, the bullish momentum is likely to continue. On the higher side, 85,500 would be the immediate resistance zone for the bulls. A successful breakout above 85,500 could push the market up to 85,800-86,000. On the flip side, if the market drops below 84,700, the uptrend could become vulnerable.

Stock Picks

HCL Tech – Buy | CMP: ₹1,662.60 | SL: ₹1,630 | Target: ₹1,705 / ₹1,735

HCL Tech is trading firmly above its near-term moving averages, showing sustained strength. The stock has formed a higher-low pattern, signalling bullish continuation. RSI is steadily rising, indicating improving momentum. A breakout above ₹1,675 can push the stock toward ₹1,705 and ₹1,735. Maintain SL at ₹1,630.

Infosys – Buy | CMP: ₹1,541.10 | SL: ₹1,505 | Target: ₹1,585 / ₹1,610

Infosys is gaining strength after a constructive consolidation phase. Price action shows strong support near ₹1,505, and the stock is attempting to cross its immediate resistance zone. RSI is moving upward, reflecting improving buying pressure. A sustained move above ₹1,550 may open the path to ₹1,585 and ₹1,610. SL at ₹1,505.

(Source_Riyank Arora Technical Analyst at Mehta Equities)