Mumbai: The benchmark indices continued narrow range activity at higher levels as BSE Sensex was up by 204 points. Among sectors, Reality Index was the top gainer, rallied over two per cent whereas Media index corrected one per cent.

Technically, after a gap-up opening, one more time the market witnessed selling pressure at higher levels. However, the short-term texture of the market is still into the positive side. On intraday charts currently, the market is witnessing positive consolidation.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “For the trend following traders now 76,700 would act as a sacrosanct support zone above the same, the positive formation is likely to continue on the higher side, we could expect 77,000-77,300 in the near future.”

On the flip side, one quick intraday correction is not ruled out if the index slips below 76,700. Below 76,700, it could retest the level of 76,400-76,200.

Benchmark indices scaled new highs in intra-day trade, but pared gains as the buying activity lacked momentum after the recent rally.

“Higher valuations are keeping investors guarded and value buying ahead of the Budget seems to be the preferred route there is caution amongst the investors due to delay in rate cuts and slowdown in the global economy,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

STOCK PICKS

IFCI Ltd

CMP: 64.10 | SL: 61 | TARGET: 72

The stock has touched its anchor VWAP support mark of 64 on its 15-minute time frame charts and is holding well above the same. A major support is placed around the 60 mark, which should serve as a crucial stop loss for the trade. On the upside, we can expect targets of 72 and above as the momentum picks up and the stock extends its rally.

GRSE - Garden Reach Shipbuilders & Engineers Ltd

CMP: 1535.05 | SL: 1,490 | TARGET: 1,750

The stock has given a strong breakout above its recent resistance mark of 1,522.45 and successfully managed to close above it. With immediate support near the 1,500 mark, a strict stop loss can be set at 1,490 to manage risk well. With the breakout being coupled with a sharp rise in volumes, we can expect targets of 1,750 and above in the next few days.

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

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