Market is largely positive

Mumbai, Dec 05

In the last week, the benchmark indices witnessed a roller-coaster activity. The Sensex was down by 5 points.

Among sectors, the IT index outperformed, rallying 3.30 per cent. During the week, the market registered profit booking at higher levels. However, after a short-term correction, it found support near the 20-day SMA (Simple Moving Average), and on last Friday, it bounced back sharply.

Technically, on daily charts, it has formed a promising reversal pattern and is currently trading comfortably above the 20-day SMA, which is largely positive.

“For positional traders, 85,000 and 84,700 would act as key support zones,” says Amol Athawale of Kotak Securities.

As long as the market is trading above these levels, the bullish sentiment is likely to continue. On the higher side, 85,900 would serve as an immediate resistance level for the bulls. A successful breakout above 85,900 could push the market up to 86,500. Conversely, a breach below 84,700 could change the sentiment. Below this level, the index could retest the levels of 84,200-84,000.

Stock Picks

Protean – Buy | CMP: ₹780 | SL: ₹755 | Target: ₹805 / ₹830

Protean is witnessing a mild pullback but continues to hold its key support around ₹755. The stock is forming a higher-base structure, showing steady accumulation. RSI remains in a stable zone, hinting at a possible bounce. A move above ₹790 may trigger upside toward ₹805 and ₹830. Maintain SL at ₹755.

HEG – Buy | CMP: ₹520.50 | SL: ₹508 | Target: ₹536 / ₹548

HEG is consolidating near its short-term support at ₹508, showing signs of stabilisation despite minor declines. The stock maintains a constructive pattern, and momentum indicators are flattening, suggesting a potential reversal. A breakout above ₹525 can lift the stock toward ₹536 and ₹548. SL at ₹508.

(Source_Riyank Arora Technical Analyst at Mehta Equities)