It’s Time For Level-Based Trading
Now, 79,000 would act as a crucial support zone above which it could retest the level of 79,700-80,000. On flip side, below 79,000, market could slip till 78,700-78,500
It’s Time For Level-Based Trading
Mumbai: On Monday, the benchmark indices witnessed volatile trading session, after a roller- coaster activity as BSE Sensex was up by 10 points. Among sectors, IT index was the top gainer, rallied over 1.2 per cent whereas Healthcare index shed over 1.5 per cent.
Technically, after early morning intraday correction, the market bounced back sharply. From the day lowest level, market rallied over 1,000 points. However, one more time it witnessed profit booking at higher levels.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that the current market texture is volatile and non-directional. Hence, level-based trading would be the ideal strategy for the traders.”
Now, the 79,000 would act as a crucial support zone for the day traders. Above 79,000, market could retest the level of 79,700-80,000. On the flip side, below 79,000 the selling pressure is likely to accelerate. Below the same, market could slip till 78,700-78,500.
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Key benchmark indices gyrated between positive and negative zones in a highly volatile intra-day session and finally ended on a lacklustre note. However, gains in select banking and IT stocks shielded the markets from yet another fall as the falling rupee and FII fund outflows continue to keep investors on the edge.”
Indian stock markets closed lower, continuing the downward trend from the previous sessions. The BSE Sensex closed flat, settling at 79,496 level. Vaibhav Vidwani, research analyst, Bonanza, said: “Market sentiment was affected by heavy selling pressure in mid and small-cap stocks. Key sectors showed mixed performance; while the IT and Banking sectors saw some buying interest, power and oil & gas stocks faced significant selling pressure.”
The market’s overall breadth remained negative with more declines than advances, indicating a cautious outlook among investors as they await upcoming corporate earnings reports and economic indicators.
STOCK PICKS
Waaree Energies | TRADE-BUY: Rs2,820.35 | SL: Rs2,700 | TARGET: Rs3,200
Waaree Energies is demonstrating strong upward momentum, supported by consistent volume accumulation, indicating sustained interest from buyers. The stock recently broke above key resistance levels, suggesting further upside potential. A buy entry at Rs2,820.35 targets an advance to Rs3,200, with a stop-loss set at Rs2,700 to manage risk. The RSI and MACD signals are bullish, further confirming positive price action. This setup presents a favourable risk-reward ratio, ideal for short-term traders.
Aarti Industries | TRADE-BUY: Rs440 | SL: Rs420 | TARGET: Rs475
Aarti Industries is trading within a bullish trend channel, holding firmly above support at Rs420. The stock’s upward momentum is supported by a rising RSI and improved volume, suggesting strengthening buyer sentiment. Entering at Rs440 with a target of Rs475 provides a balanced risk-reward outlook, with a stop-loss at Rs420 to safeguard downside risk. Momentum indicators signal further price appreciation, making this an attractive entry for short-term gains.
(Source: Riyank Arora, technical analyst at Mehta Equities)