Market is largely positive

Mumbai, Sep 19

In the last week, the benchmark indices gained 0.95 per cent, while the Sensex was up by 720 points.

Among sectors, PSU Bank and Reality indices outperformed. PSU Bank rallied around 5%, and Reality gained 4.5%, whereas some profit booking was seen in FMCG and Consumer stocks. During the week, the market continued its positive momentum.

However, on last Friday, it witnessed profit booking at higher levels. Technically, on weekly charts, the market has formed a bullish candle, and on daily charts, it is holding an uptrend continuation formation, which is largely positive.

“We are of the view that the short-term market outlook remains bullish, but due to temporary overbought conditions, range-bound activity may occur in the near future,” says Amol Athawale of Kotak Securities.

Hence, buying on dips and selling on rallies would be the ideal strategy for traders.

For traders, the key support zones are around 82,300 and 82,100-81,900, while resistance levels are at 83,200-83,400 and 83,700. Below 81,900, the uptrend could become vulnerable.

Stock Picks

Urban Company – Buy | CMP: ₹185 | SL: ₹176 | Target: ₹198 / ₹205

Urban Company continues to display strong momentum after breaking out from consolidation. The stock is holding above its short-term moving averages with steady volumes. RSI is trending positively, confirming fresh buying interest. Sustaining above ₹185 could take the stock higher toward ₹198 and ₹205. A stop-loss at ₹176 is advised to manage downside risk.

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Sigachi – Buy | CMP: ₹44.20 | SL: ₹41 | Target: ₹49 / ₹52

Sigachi has shown resilience around its support zone and is now trending higher with improved buying activity. The stock is trading above its near-term averages, while RSI points to increasing strength. Holding above ₹44.20 can trigger a move toward ₹49 and ₹52. Traders can consider fresh positions with a stop-loss at ₹41 for risk protection.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.