Market is largely positive
The market is largely positive as investor sentiment improves, driven by strong earnings reports, economic optimism, and favorable global cues boosting key indices.
Market is largely positive
Mumbai, Aug 04
Today, the benchmark indices witnessed a promising pullback rally. The Sensex was up by 419 points.
Among sectors, almost all the major sectoral indices traded in positive territory, but the Metal and Defense indices outperformed, rallying over 2.5 per cent. Technically, after a sharp correction on intraday charts, the market has formed a reversal pattern, and on daily charts, it has formed a bullish candle, which is largely positive.
“We are of the view that, in the short term, the market's texture is weak but oversold; hence, a sharp technical bounce back is not ruled out from the current levels,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities
For day traders, 80,600 and 80,500 would act as key support zones, while 81,500-81,800 could be the key resistance areas for the bulls. However, below 80,500, the sentiment could change. Below this level, traders may prefer to exit their long positions.
Stock Picks
Reliance Industries (RELIANCE)
Buy | CMP: ₹1,410 | SL: ₹1,370 | Target: ₹1,480 / ₹1,500
Analysis: Reliance is holding firm above the ₹1,400 mark and is showing signs of fresh accumulation. The stock is trading above its short-term moving averages, indicating a positive bias. RSI is trending higher, suggesting improving momentum. Sustaining above ₹1,410 can lead to an upmove toward ₹1,480–₹1,500. Price action remains constructive with higher lows, which supports a bullish outlook. Traders may consider fresh buying positions with a stop-loss at ₹1,370 to manage risk effectively.
UPL Ltd (UPL)
Buy | CMP: ₹712 | SL: ₹690 | Target: ₹750 / ₹770
Analysis: UPL has bounced back strongly from support near ₹700 and is now trading with renewed strength. The stock is above its 20-day and 50-day moving averages, signaling a positive trend. RSI is also pointing upward, confirming bullish momentum. A sustained move above ₹712 could take the stock toward ₹750–₹770 in the near term. With strong buying interest and a supportive structure, UPL offers a favorable risk-reward setup. Traders may enter with a stop-loss at ₹690.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
EoM.
