Intraday market texture still non-directional
While benchmark indices hit fresh intra-day life-time highs, Nifty almost touched 25k mark, most of the gains were lost
image for illustrative purpose
Mumbai: On Monday, the benchmark indices witnessed a volatile trading session as BSE Sensex was up by 23 points. Among sectors, PSU Bank index outperformed, rallied 2.35 per cent whereas intraday profit booking was seen in selective FMCG and IT stocks.
Technically, the market opened with a positive note, but due to profit booking at higher levels, it failed to 81,750 levels. From the day’s highest level, the market shed over 750 points. However, the short-term market texture is still in to the long side.
“We are of the view that, the intraday market texture is non-directional. Hence, buying on intraday correction and sell on rallies would be the ideal strategy for the day traders,” says Shrikant Chouhanm head (equity research), Kotak Securities.
For traders now, the 81,000-80,800 would be the key support areas, while 81,750-82,000 would act as a crucial resistance area for the bulls. On the flip side, below 24,650/80,800 uptrend would be vulnerable.
“While benchmark indices hit fresh intra-day life-time highs and Nifty almost touched the 25k mark, most of the gains were lost and markets ended end off their highs amid profit-taking in IT and telecom stocks. Going ahead, global market direction and corporate earnings will dictate the trend,” says Prashanth Tapse, senior V-P (research), Mehta Equities.
“The Indian benchmark equity index Sensex closed on positive note, influenced by gains in the international market and driven by impressive results from ICICI Bank, PNB supported the gains in the banking sector. Additionally, energy shares increased following robust earnings reports from power producer NTPC,” said Vaibhav Vidwani, research analyst, Bonanza Portfolio.
STOCK PICKS
BEL
Buy | CMP: 321.35 | Stop Loss: 315 | Target: 350
BEL is exhibiting a strong breakout, supported by an RSI (14) at 57.08 and witnessing a good uptick in volumes and price. This indicates a positive momentum, and we anticipate potential targets of 350. A stop-loss should be set at 315 to manage risk effectively.
Ask Automotive
Buy | CMP: 416.95 | Stop-Loss: 395 | Target: 450
Ask Automotive has achieved a strong breakout above its resistance level of 406.50, with an RSI (14) at 73.34 and volumes nearly 2.5 times its 30-day average. This suggests strong momentum, and we expect potential targets of 450. A stop-loss should be set at 395 to manage risk effectively.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/ All prices in Rs
