Charts suggest level-based trading for day traders
For now, 78,800 and 79,300 are important levels. Above 79,300, market could move up to 79,700-80,000. On the flip side, below 78,800, it could slip till 78,500-78,250
image for illustrative purpose
Mumbai: On Thursday, the benchmark indices witnessed a volatile trading session, after a roller-coaster activity, as BSE Sensex was down by 582 points. Among sectors, IT and Metal indices lost the most shed over 1.5 per cent, whereas some buying was seen in selective Media and Pharma stocks.
Technically, the market is consistently facing selling pressure at higher levels. From the day highest levels, Sensex shed over 800 points.
A bearish candle on daily charts and Double Top formation on intraday charts indicates further weakness from the current levels. Shrikant Chouhan head (equity research), Kotak Securities, said: “For the day traders intraday texture is non-directional. Hence, level-based trading would be the ideal strategy.”
For Sensex 78,800 and 79,300 are the important levels to watch out. Above 79,300, the market could move up to 79,700-80,000. On the flip side, below 78,800 selling pressure is likely to accelerate. Below the same, it could slip till 78,500-78,250.
Vaibhav Vidwani, research analyst, Bonanza Portfolio, said: “This downturn followed a volatile trading session influenced by global market trends and the Reserve Bank of India’s decision to maintain the key policy rate at 6.5% amid rising food inflation concerns.”
Vaibhav added: “The day began with a gap down, reflecting negative cues from Asian markets, where indices like Japan’s Nikkei and Hong Kong’s Hang Seng also traded lower. Key sectors such as metals and technology saw significant selling pressure, with major stocks like JSW Steel and Infosys leading the declines. Despite the losses, some stocks like ITC and Tata Motors managed to gain, highlighting a mixed market sentiment.”
Stock Picks
Buy | DLF | CMP: Rs834 | SL: Rs800 | Target: Rs900
DLF exhibits strong momentum, with key support at Rs800 and resistance at Rs900. The RSI (14) is currently at 48, indicating ongoing strength. Wednesday’s trading volumes were aligned with the 30-day average, further reinforcing the stock’s stability. DLF is also trading comfortably above crucial moving averages, suggesting continued bullishness. A buy at the current market price (Rs834) is recommended, with a stop loss at Rs800 and a target of Rs900.
Buy | MARUTI | CMP: Rs12,219 | SL: Rs12,000 | Target: Rs13,000
MARUTI is demonstrating potential upside with support at Rs12,000 and resistance at Rs13,000. The RSI (14) stands at 43, hinting at a possible momentum pickup. Wednesday’s volumes were consistent with the 30-day average, reflecting solid trading activity. The stock is well-positioned above critical moving averages, indicating a positive outlook. A buy at the current market price (Rs12,219) is advised, with a stop loss at Rs12,000 and a target of Rs13,000.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
