Uptrend wave is likely to continue

Mumbai: The benchmark indices witnessed a recovery from lower levels. The Sensex was down by 54 points. Among sectors, the Media index outperformed today, rallying 1.80 per cent, whereas the Capital Market index lost the most, shedding 1.35 percent.

Technically, after a gap-down open, the market took support near 84850 and reversed, which is largely positive. Additionally, on the daily charts, it is holding an uptrend continuation formation, indicating that the uptrend wave is likely to continue in the near future.

Shrikant Chauhan, Kotak Securities, said: “For traders, 84850 and 84600 would act as key support zones. As long as the market is trading above these levels, the positive sentiment is likely to continue.

On the higher side, 85500 would be the immediate resistance zone for day traders. A breach of 26,100/85500 could push the market up to 85800. However, below 86000, the uptrend would become vulnerable.”

STOCK PICKS

Jindal Steel | TRADE – BUY | CMP: Rs1,034 | SL: Rs1,000 | TARGETs: Rs1,080-Rs1,120

Jindal Steel continues to trade in a strong uptrend with higher-high and higher-low formations on the daily chart. The stock is holding firmly above the Rs1,000 support zone, indicating sustained buying interest. Momentum indicators remain positive, with RSI comfortably in the bullish zone. A sustained move above Rs1,040 can accelerate upside toward Rs1,080 and Rs1,120. Traders may hold long positions with a stop-loss at Rs1,000.

Muthoot Finance | TRADE – BUY | CMP: Rs3,856 | SL: Rs3,740 | TARGETs: Rs3,980-Rs4,080

Muthoot Finance is showing steady strength after consolidating near its support band. The stock has reclaimed its short-term moving averages, signalling trend continuation. Price action indicates accumulation on minor dips, while RSI remains positively placed. A breakout above Rs3,880 could open the door for a rally toward Rs3,980 and Rs4,080. Maintain a strict stop-loss at Rs3,740.

(Source: Mehta Equities)