Further uptrend possible from current levels

Mumbai, Aug 20

Today, the benchmark indices continued their positive momentum. The Sensex was up by 213 points.

Among sectors, the IT index outperformed, rallying 2.63 per cent, whereas despite strong market sentiment, profit booking was seen in the Media Index, which shed over 2 per cent.

Technically, the market successfully cleared the 81,500 resistance zone, and post-breakout, it intensified its positive momentum. Additionally, a bullish candle on daily charts and an uptrend continuation formation on intraday charts indicate a further uptrend from the current levels.

“For day traders, the 81,500 and 81,300 levels would act as key support zones,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

As long as the market trades above these levels, the bullish sentiment is likely to continue. On the higher side, the index could move up to 82,300–82,500. Conversely, below 81,300, the uptrend would become vulnerable.

Stock Picks

EL – Buy | CMP: ₹371.80 | SL: ₹362 | Target: ₹385 / ₹392

BEL is showing steady strength after a consolidation phase and is holding above key short-term moving averages. Volumes have been supportive, and RSI is trending upward, indicating sustained buying interest. If the stock sustains above ₹371.80, it can head toward ₹385 and ₹392 in the near term. Traders may consider fresh long positions with a stop-loss at ₹362 to manage downside risk.

Bajaj Finance – Buy | CMP: ₹888 | SL: ₹865 | Target: ₹915 / ₹935

Bajaj Finance has bounced from recent support zones and is trading comfortably above its moving averages. The stock is witnessing renewed momentum, and RSI is pointing towards further strength. Sustaining above ₹888 could lead to a rally toward ₹915 and ₹935 in the short term. Traders can initiate buy positions with a stop-loss at ₹865 to safeguard against volatility.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.