Further uptrend possible from current levels

Mumbai, Nov 20

Today, 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.

“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”, says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

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

1. CEAT Ltd – Buy | CMP: ₹3,875 | SL: ₹3,780 | Target: ₹4,000 / ₹4,080

CEAT is consolidating after a sharp move and is holding firmly above its medium-term support zone near ₹3,780. The stock is forming a higher-base pattern, indicating accumulation. RSI is stable, suggesting a possible upward push. A move above ₹3,900 can lead to targets of ₹4,000 and ₹4,080. SL at ₹3,780.

2. JK Tyre – Buy | CMP: ₹450.65 | SL: ₹435 | Target: ₹468 / ₹478

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 ₹455 may take the stock toward ₹468 and ₹478. Keep SL at ₹435.

(Source_Riyank Arora Technical Analyst at Mehta Equities)