Time for level-based trading amid uncertainty

Mumbai: On Thursday, the benchmark indices witnessed intraday profit booking at higher levels. BSE Sensex was down by 151 points. Among sectors, selective consumer and media stocks witnessed intraday buying interest whereas reality and auto stocks registered profit booking at higher levels.

Technically, after gap-up open, the market consistently facing selling pressure at higher levels. A bearish candle on daily charts and lower top formation on intraday charts indicating weak sentiment is likely to continue in the near future.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, the current market texture is non-directional. Hence, a level-based trading would be an ideal strategy for the day traders. For the down-side, the 82,000 would be the key support zone. Below the same, NSE Nifty could slip till 81,700-81,600.” On the flip side, 82,600 would be the crucial resistance area for the bulls. Post 82,600 range breakout, the market could move up till 82,900-83,000.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Markets ended weak in a volatile trading session led by profit-taking in Reliance Industries. Globally, most of the equity indices were sluggish to mixed and are awaiting key US data on Friday, which would provide some hint on the Federal Reserve chief’s likely stance on the interest rate in this month’s policy announcement.”

STOCK PICKS

IPCA Labs | Buy | CMP: Rs1,445 | SL: Rs1,400 | Target: Rs1,525 - Rs1,550

IPCA Labs has recently shown a bullish breakout above the key resistance level of Rs1,430, indicating the potential for further upward movement. The stock’s technical structure reflects strength, and with momentum building, it is well-positioned for an upside move. A stop loss is placed at Rs1,400 to manage risk, while the price targets are set at Rs1,525 and Rs1,550. This trade setup offers a favorable risk-reward ratio for investors seeking short- to medium-term gains.

GMR Infra | Buy | CMP: Rs95.94 | SL: Rs92.40 | Target: Rs103.00

GMR Infra has touched its trendline support level at Rs93.75 and responded with a strong bullish candlestick, indicating renewed buying interest. The stock’s positive price action suggests a continuation of its upward momentum, backed by technical strength. With a stop loss set at Rs92.40 to protect downside risk, the price is poised to move towards the Rs103.00 target, supported by strong momentum indicators. This offers an attractive entry point for traders looking for a short-term opportunity.

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

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