Charts indicating indecisiveness

Mumbai: On Tuesday, the benchmark indices witnessed range-bound activity as BSE Sensex was down by 362 points. Among sectors, Nifty Reality index rallied 1.5 per cent, whereas Media index shed over one per cent.

Technically, after a gap-down opening entire day the market hovered between 72,500 and 72,700 pints. On daily charts also, the index has formed inside body, candle which indicating indecisiveness between the bulls and the bears.

“We are of the view that, currently the market is witnessing positive consolidation and for the bulls now, 50 day SMA or 72,400 (Simple Moving Average) could be the sacrosanct support level,” says Shrikant Chouhan, Head Equity Research, Kotak Securities. Above the same, the market could move up till 72,800-73,000. On the flip side, below 50 day SMA or 72,400 the selling pressure could accelerate to 72,100-72,000.

Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Investors resorted to profit-taking due to lack of enthusiasm in a truncated week.”

Markets were mostly range-bound with a negative bias as frontline technology stocks were at the receiving end on concerns that subdued global economy may lead to muted IT spending by big clients this year.

Stock Picks

Hindustan Copper Ltd

CMP: 282.55 | Stoploss: 265 | Target: 310

The stock has given a good breakout above its downward sloping trendline resistance mark of 279 on its daily charts. Volumes in the stock in Tuesday’s session were nearly 2 times its average 30-day traded volume. A strict stop-loss at 265 should be kept for all longs for potential upside targets of 310 and above.

Infosys

CMP: 1492.65 | Stoploss: 1475.00 | Target: 1550.00

The stock has touched its major support mark of 1,487.50 on its daily charts and formed a Doji at support. With a low-risk, strict stop-loss kept at 1475 mark, potential targets of 1,550 and 1,575 can be seen on the upside in Infosys.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

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