Further uptrend possible from the current levels

Mumbai, Oct 01

Today, the benchmark indices witnessed a sharp bounce back from the lower levels. The Sensex was up by 716 points.

Among sectors, except the PSU Bank index, all the major sectoral indices traded in positive territory, with the Media Index outperforming today, rallying 3.45 per cent.

Technically, after a muted open, the market not only held the positive momentum but also successfully cleared the short-term resistance zone of 80,800. On daily charts, it has formed a long bullish candle and also a reversal formation, which supports a further uptrend from the current levels.

“We are of the view that 80,800 and 80,500 are key support zones for day traders,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

As long as the market trades above these levels, a pullback formation is likely to continue. On the higher side, it could move up to 81,300–81,500. Further upside may also continue, potentially lifting the market up to 81,700.

However, below 80,500, market sentiment could change. Below these levels, traders may prefer to exit their long positions.

Stock Picks

Yes Bank – Buy | CMP: ₹21.76 | SL: ₹20.80 | Target: ₹23 / ₹24

Yes Bank is consolidating near its support zone with steady accumulation. Sustaining above ₹21.76 could trigger fresh buying momentum toward ₹23 and ₹24. Volumes and RSI show improving strength. A stop-loss at ₹20.80 is advised to manage risk effectively.

SBI – Buy | CMP: ₹864 | SL: ₹845 | Target: ₹890 / ₹910

SBI continues to trade firmly above its support levels, maintaining higher highs and higher lows. Momentum remains positive with strong sector backing. Sustaining above ₹864 may fuel upside toward ₹890 and ₹910. Traders should keep a stop-loss at ₹845 to protect downside.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.