Further uptrend possible from current levels

Mumbai, Aug 11

Today, the benchmark indices bounced back sharply, with the Sensex was up by 746 points.

Among sectors, almost all the major sectoral indices traded in positive territory, but the PSU Bank index outperformed, rallying over 2 per cent.

Technically, after a long correction, the market has formed a reversal pattern on daily charts. Additionally, a bullish candle on daily charts also supports further uptrend from the current levels.

“We believe that 80,400 and 80,200 would act as key support zones for day traders”, says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

Above these levels, the pullback move is likely to continue till 81,000-81,200. On the flip side, below 80,200, sentiment could turn negative. Traders may then prefer to exit their long positions.

Stock Picks

Indian Bank

Buy | CMP: ₹670 | SL: ₹640 | Target: ₹720 / ₹750

Indian Bank is trading near breakout levels after a healthy consolidation phase. The stock has maintained support above ₹650 and is showing strong price action backed by rising volumes. RSI is trending higher, indicating renewed buying momentum. If it sustains above ₹670, the uptrend could extend toward ₹720–₹750 in the short term. A stop-loss at ₹640 is suggested to manage risk.

HDFC Bank

Buy | CMP: ₹1,990 | SL: ₹1,920 | Target: ₹2,080 / ₹2,150

HDFC Bank has regained strength after taking support near ₹1,950 and is trading above its short-term moving averages. RSI is rising from oversold levels, suggesting a possible trend reversal. Sustaining above ₹1,990 could trigger an upmove toward ₹2,080–₹2,150. Traders may consider fresh buying with a stop-loss at ₹1,920 for a favorable risk-reward setup.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM