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Mumbai: In the last week, the benchmark indices witnessed a lacklustre activity as BSE Sensex gained 650 points. Among sectors, Nifty India Tourism, Pharma, and Auto indices rose over two per cent, whereas the Media index lost the most, shed nearly two per cent. During the week, the market experienced non-directional activity.

On the downside, it found support near 78,100, while profit booking occurred near the 200-day Simple Moving Average (SMA) or 78,800.Technically, a small inside body candle appeared on the weekly charts, and the non-directional activity on the daily and intraday charts indicates indecisiveness between the bulls and the bears.

Amol Athawale, V-P (technical research), Kotak Securities, said: “For positional traders, the 200-day SMA or 78,800 will be a key breakout level. If the market moves above this level, it could bounce back to 79,500. Further upside may also continue, potentially lifting the index to 80,200. Conversely, if it falls below 78,100, the sentiment could change, and the market might slip to 77,700-77,500.”

Prashanth Tapse, Senior VP-Research, Mehta Equities, said: “Despite ending higher for the second straight session, markets lacked conviction as indices came off their early highs amid late profit-taking in several sectoral stocks. The mood remains that of caution as foreign investors have not softened their stance on Indian equities with rupee’s record fall against the dollar continuing to create uncertainty amongst the investors.”

Vaibhav Vidwani, research analyst, Bonanza, said: “The Indian stock market closed positively today, with the BSE Sensex rising by 226 points, or 0.29 per cent, to settle at 78,699,. This upward trend was supported by strong performances in sectors such as auto, pharma, and FMCG. Despite the positive close, market sentiment remains cautious due to ongoing foreign institutional selling and global economic uncertainties.”

STOCK PICKS

Interarch Building Projects| TRADE-BUY | CMP: Rs1,815 | SL : Rs1,750 | TARGET: Rs1,900

The stock broke out above its previous swing high resistance mark of 1,810 and currently experiencing a re-test to the breakout mark. With the overall trend being positive and the stock being around a low risk buy level, we can expect targets of 1,900 and above to come in. A strict SL should be maintained near 1,750 to manage risk well.

HDFC Bank| TRADE-BUY | CMP : Rs1,798 | SL : Rs1,775 | TARGET : Rs1,840

The stock has successfully retested its breakout level and indicating signs of buying and reversal from lower levels. With volumes picking up nicely and outlook on private banks being strong, we expect upside move towards 1,840 and above. A strict SL should be kept at 1,775 mark to manage risk well.

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