Level-Based Trading Ideal Amid Indecisiveness

Mumbai: On Tuesday, the benchmark indices witnessed a range-bound activity, with BSE Sensex was up by 234 points. Among sectors, buying was seen in Oil and Gas, Energy, and Metal stocks, whereas intraday profit booking occurred in selective IT and Digital stocks. Technically, after a gap-up open, the market hovered throughout the day between the ranges of 78,000-78,450. This intraday non-directional activity and the small inside candle on daily charts indicate indecisiveness between the bulls and the bears.

Shrikant Chouhan, head (equity research), Kotak Securities: “For day traders, 78500 would be the key resistance zone. If the index manages to trade above this level, it could bounce back to 78800-79000.” He added: “On the other hand, if it falls below 77900, selling pressure is likely to accelerate. Below this level, the market could slip to 77500-77400. The current market texture is non-directional; therefore, level-based trading would be the ideal strategy for day traders.”

STOCK PICKS

EIEL|TRADE-BUY: Rs311.45 | SL: Rs289 | TARGETS: Rs340 and Rs380

EIEL is showing robust support at its IPO listing day’s anchor VWAP level, indicating a strong technical base. The stock is gaining momentum, with rising volumes suggesting an imminent upward move. This presents an excellent trading opportunity, with potential targets at Rs340 and Rs380. Maintaining a strict stop loss at Rs289 is crucial for effective risk management.

ONGC | TRADE-BUY: Rs267.50 | SL:Rs260 | TARGET: Rs280

ONGC is approaching a key trendline resistance at Rs267.50. A breakout above this level is expected to bring strong upward momentum, driving the stock toward Rs280 or higher. This setup is further supported by anticipated volume increases, highlighting near-term potential. A strict stop loss at Rs260 is essential to minimize downside risk.

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