Further uptrend possible from current levels

Mumbai: The benchmark indices continued their positive momentum, with the Sensex was up by 446 points. Among sectors, buying was seen in Auto and Financial stocks, whereas the Media index lost the most, shedding over 1.67 per cent.

Technically, the market opened with a gap up and maintained positive momentum throughout the day. A bullish candle on daily charts and an uptrend continuation formation on intraday charts indicate a further uptrend from the current levels.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We believe that the current market texture is bullish, but buying on intraday dips and selling on rallies would be the ideal strategy for day traders. For traders, now 85,500-85,200 would act as key support zones, while 85,800 and 86,300 could be crucial resistance areas for the bulls. “However, below 85,200, the uptrend would become vulnerable.”

STOCK PICKS

CEAT Ltd | TRADE – BUY | CMP: Rs3,875 | SL: Rs3,780 | TARGETs: Rs4,000-Rs4,080

CEAT is consolidating after a sharp move and is holding firmly above its medium-term support zone near Rs3,780. The stock is forming a higher-base pattern, indicating accumulation. RSI is stable, suggesting a possible upward push. A move above Rs3,900 can lead to targets of Rs4,000 and Rs4,080. SL at Rs3,780.

JK Tyre | TRADE – BUY | CMP: Rs450.65 | SL: Rs435 | TARGETs: Rs468-Rs478

JK Tyre continues to display strong buying interest with higher lows forming consistently. The stock has reclaimed short-term moving averages, indicating momentum revival. RSI is turning positive from mid-levels. A breakout above Rs455 may take the stock toward Rs468 and Rs478. Keep SL at Rs435.

(Source: Riyank Arora Technical Analyst at Mehta Equities)