Market is largely positive

Mumbai, Jul 23

Today, the benchmark indices bounced back sharply, with the Sensex gaining 540 points.

Among sectors, intraday buying was seen in Auto, Healthcare, and Financial stocks, whereas the Realty index was the top loser, shedding 2.65 per cent. Technically, after a positive open, the market maintained its positive momentum throughout the day. On intraday charts, it is holding a uptrend continuation formation, and on daily charts, a bullish candle has been formed, which is largely positive.

For positional traders, the 50-day SMA (Simple Moving Average) at 82,000 and 82,200 would act as key support zones.

“As long as the market trades above these levels, the bullish sentiment is likely to continue”, says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

On the higher side, the 20-day SMA or 83,000 could serve as the immediate hurdle for the bulls. A successful breakout above these levels could push the market towards 83,300–83,500.

On the flip side, if the market falls below 82,000, the uptrend would become vulnerable. Below this level, traders may prefer to exit their long positions.

Stock Picks

Kalyan Jewellers

Buy at ₹611 | Stop‑Loss ₹585 | Target ₹670

Kalyan Jewellers has broken above the ₹600 resistance level with strong volumes, signaling renewed buying interest in the jewellery retail segment. The stock is now trading above its 20-day and 50-day moving averages, confirming short-term technical strength. The Relative Strength Index (RSI) stands near 66, indicating healthy upward momentum while staying clear of overbought levels. The price chart shows a pattern of higher highs and higher lows, reinforcing a bullish outlook. As long as Kalyan holds above ₹585, it appears well-positioned for a move toward ₹670 in the near term. Traders may enter on minor dips, using ₹585 as a protective stop.

Indian Railway Finance Corporation (IRFC)

Buy at ₹134.85 | Stop‑Loss ₹128 | Target ₹155

IRFC has surpassed the ₹132–135 resistance zone on increasing volume, demonstrating fresh buyer interest in the infrastructure-finance space. The stock is currently trading above its short-term moving averages, indicating a bullish shift. The RSI is around 65, reflecting rising momentum with room to climb. Its chart displays a steady uptrend with higher highs and higher lows—favorable for further gains. Provided IRFC maintains above ₹128, it can head toward ₹155 in the near term. Traders may consider initiating positions on pullbacks, with ₹128 as a prudent stop-loss level.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.