Further uptrend possible from current levels

Mumbai, Jul 29

Today, the benchmark indices bounced back sharply. The Sensex was up by 447 points.

Among sectors, almost all the major sectoral indices traded in positive territory, with Pharma, Healthcare, and Infra indices outperforming, each rallying over 1 per cent.

Technically, after a muted open, the market took support near 80,600 and rebounded sharply. From the day's lowest point, the market rallied over 850 points. An intraday reversal formation after a long correction, coupled with a bullish candle on the daily charts, indicates a further uptrend from the current levels.

“We are of the view that 81,000 and 80,900 will act as key support zones for day traders. As long as the market trades above these levels, the pullback formation is likely to continue,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities. sOn the higher side, 82,000–82,200 would be the key resistance zones for the bulls. For day traders, buying on intraday dips and selling on rallies would be the ideal strategy. However, if the market falls below 24,650/80,900, sentiment could change. Below these levels, traders may prefer to exit their long positions.

Stock Picks

Apollo Micro Systems

Buy | CMP: ₹177 | SL: ₹170 | Target: ₹190 / ₹200

Analysis: Apollo Micro is holding strong above its breakout level of ₹175 and is showing steady buying interest. The stock is trading above its short-term moving averages, which signals strength. The RSI is also trending higher, indicating positive momentum. As long as it stays above ₹170, it can move toward ₹190 and ₹200 in the short term. The price pattern remains bullish with higher highs, suggesting further upside. Traders can consider buying with a stop-loss at ₹170 to protect against any downside.

Zaggle Prepaid Ocean Servicess

Buy | CMP: ₹394 | SL: ₹380 | Target: ₹425 / ₹440

Analysis: Zaggle Prepaid has broken past ₹390 with strong volume support, showing renewed strength. The stock is trading above its 20-day and 50-day moving averages, which is a positive sign. RSI is also firm, suggesting strong momentum without being overbought. If it sustains above ₹394, it can rally toward ₹425 and ₹440. The overall trend is bullish, and price action indicates further upside potential. Traders can enter at current levels, keeping a stop-loss at ₹380 to manage risk effectively.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.