Further upward movement possible from current levels

Mumbai, Sep 16

Today, the benchmark indices witnessed a promising uptrend rally. The Sensex was up by 595 points.

Among sectors, almost all the major sectoral indices traded in positive territory, but the Auto index outperformed, rallying over 1.5 per cent.

Technically, after a muted open, the market surpassed the 82,000 resistance mark, and post-breakout, positive momentum intensified.

A long bullish candle on daily charts and an uptrend continuation pattern on intraday charts indicate further upward movement from the current levels.

“We are of the view that as long as the market is trading above 82,000 the bullish sentiment is likely to continue,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

On the higher side, it could move up to 82,800, with further upside potential that may lift the index to 83,100. On the flip side, below 82,000, the sentiment could change. If the market falls below this level, traders may consider exiting their long positions.

The current market texture is bullish, but buying on intraday dips and selling on rallies would be the ideal strategy for day traders.

Stock Picks

Mazagon Dock

Buy | CMP: 2946 | SL: 2860 | Target: 3100

Mazagon Dock is trading firm above 2900 levels, showing resilience despite recent volatility. Sustaining above its support at 2860 may push the stock towards 3100. Strong momentum and healthy demand favor a bullish outlook, making dips attractive for accumulation.

Aadhar Housing

Buy | CMP: 540 | SL: 520 | Target: 580

Aadhar Housing is holding steady at 540, with key support near 520. The stock is gaining traction, backed by improving volumes and positive sentiment in the housing finance sector. A breakout above current levels can accelerate the move towards 580 in the short term.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.