Investors waiting for either side breakout

Mumbai: On Wednesday, the benchmark indices witnessed lacklustre activity as BSE Sensex was up by 249 points. Among sectors, Media, Metal and Pharma indices tallied over one per cent whereas some profit booking were seen in PSU Banks and Reality stocks.

Technically, in this week so far market witnessed range-bound activity. On the lower side, it is consistently taking support between 81,100-81,400 on the flip side, witnessed profit booking between 81,750-81,800.

Shrikant Chouhan head (equity research), Kotak Securities, said: “We are of the view that the current market texture is non-directional perhaps traders are waiting for either side breakout.”

On the higher side, above 81,800 level, the market could rally till 82,200-8,500 range. However, below 81,100 level, the sentiment could change. Below the same, the market could retest the level of 80,800-80,500 range.

STOCK PICKS

Kotak Bank|Buy | CMP 1,807.90 | SL 1,790 | Target 1,850

The stock has successfully touched its anchor VWAP support mark and at current levels of 1,807.90, its offering good risk to reward opportunity. With volumes picking up well and stock witnessing signs of reversal, the stock is a good buy with strict SL of 1,790 for targets of 1,850 and above.

HDFC Bank | CMP : 1,615 - SL 1,600 - TARGET 1,650

The stock has been facing constant selling pressure for last few trading sessions and witnessing early signs of a reversal from lower levels. At present level, with the bullish price action and decent volume pick up, the stock appears to be a strong buy with SL of 1,600 for target of 1,650 and above.

(Source: Riyank Arora, technical analyst at Mehta Equities)

CMP (Current Market Price); SL (Stop Loss)/All prices in Rs