Better For Traders To Go For Level-Based Trading

Mumbai: On Thursday, benchmark indices witnessed narrow-range activity, with Sensex down by 203 points. Among sectors, the Capital Market index outperformed, rallying over 3 per cent, while selective financial stocks experienced intraday profit booking at higher levels.

Technically, after a gap down open, the market found support near 75,500 pts and reversed. Following this reversal, the market exhibited range-bound activity throughout the day. Additionally, on daily charts, a small candle has formed, indicating non-directional activity.

Shrikant Chauhan, Head-Equity Research, Kotak Securities, said: “For day traders, the 75,800 level is crucial to watch. If the market moves above 75,800 pts, it could rally to the 76,100-76,300 range. Conversely, a breach of 75,500 could change the sentiment, potentially leading to a retest of the 75,200-75,000 levels.”

Given the current market texture is non-directional, level-based trading would be the ideal strategy for day traders, he added.

Vaibhav Vidwani, Research Analyst, Bonanza, said: “The Indian stock market experienced a notable decline, with the BSE Sensex dropping by approximately 203 points, trading at around 75,735. This downturn is attributed to negative global cues following the release of the US Federal Reserve’s meeting minutes, which indicated no imminent interest rate cuts, coupled with ongoing concerns regarding US trade tariffs under President Donald Trump.”

In the sectoral performance, banking stocks were particularly hard-hit, with HDFC Bank among the top losers, falling over 2 per cent. Conversely, NTPC and Hindalco showed some resilience, gaining around 2 per cent each.

STOCK PICKS

Trent | TRADE-BUY | CMP: Rs5,099 | SL: Rs5,000 | TARGET: Rs5,250

The stock has touched its major support mark of 5000 and indicating good sign of reversal from lower levels which shows strength. With the trend being positive and stock looking all set for an upside move towards 5250 and above, we recommend a buy in Trent with a strict SL of 5000 on trigger basis.

BSE LTD | TRADE-BUY | CMP: Rs5,940 | SL: Rs5,880 | TARGET: Rs6,100

The stock has given a good breakout above 5875 resistance mark and showing good signs of momentum and strength. With price making new highs and volumes being strong, we feel stock can head higher towards 6100 and above. A strict SL should be maintained

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