Uptrend is likely to continue

In the last session of the week, the benchmark indices bounced back sharply. The Nifty ended 1.64 per cent higher, while the Sensex was up by 1345 points. Among sectors, Defence and IT indices outperformed, with Defence up 4 percent and IT up 3.5 percent. During the week, the market successfully cleared the 84,000 resistance zone, which intensified the positive momentum.

Technically, on daily and weekly charts, it has formed a reversal pattern and is currently trading above the 20-day SMA (Simple Moving Average), which is largely positive. “We are of the view that as long as the market is trading above the 20-day SMA or 84,000, the uptrend is likely to continue,” says Amol Athawale of Kotak Securities.

On the higher side, 84,900 and 85,200 would be the immediate resistance zones for the bulls. A successful breakout above 85,200 could push the market up to 85,800-86,400. On the flip side, below 84,000, the uptrend would become vulnerable. Below this level, the market could retest the 83,400-82,900 range.

STOCK PICKS

Infosys | TRADE – BUY | CMP: Rs1,502.80 | SL: Rs1,460 | TARGETs: Rs1,560-Rs1,590

Infosys is showing steady strength after reclaiming its short-term moving averages. The stock has formed a higher-low pattern, indicating trend reversal on the charts. RSI is turning upward, which signals improving momentum.

A sustained move above Rs1,510 can take the stock toward Rs1,560 and Rs1,590. Traders may consider long positions with a stop-loss at Rs1,460.

Eicher Motors | TRADE – BUY | CMP: Rs6,695 | SL: Rs6,500 | TARGETs: Rs6,950-Rs7,150

Eicher Motors continues to remain in a strong uptrend, supported by rising volume and healthy price structure.

The stock has held above immediate support at Rs6,500, showing strong demand at lower levels. Momentum indicators remain positive, suggesting further upside. A breakout above Rs6,720 can open the way toward Rs6,950 and Rs7,150. SL advised at Rs6,500.

(Source: Riyank Arora Technical Analyst at Mehta Equities)