Indices hovering in non-directional market texture

Mumbai: On last Wednesday, the benchmark indices witnessed a range boundactivity, BSE Sensex was down by 161 point.Among sectors, IT, Metal and PSU banks witnessed profit booking athigher levels whereas some buying seen in selective FMCG and Mediastocks. Technically, after a strong uptrend rally, the market iswitnessing non directional activity.

In addition, on daily charts the index has formed small bearish candlethat also supports incisiveness between the bulls and bears. “We are of the view that, as long as the index is trading above 61,000 points, the uptrend formation is likely to continue,” says Shrikant Chouhan,Head of Equity Research (Retail), Kotak Securities.

Above the same, the index could move up till 61,500-61,700. On theflip side, a quick short-term correction possible if the index slipbe. Below the same, the market could retest the level of 60,700-60,500. The current market texture is non-directional. Hence, level-based trading would be the ideal strategy for the day traders.