Market hovering in indecisive mode

Mumbai: On Thursday, the benchmark indices continued positive momentum as BSE Sensex was up by 148 points. Among sectors, consumer, metal and PSU banks stocks witnessed buying interest whereas selective IT and energy stocks registered intraday profit booking at higher levels.

Technically, after a gap-up open, the market witnessed intraday profit booking at higher levels. On daily charts it has formed small bearish candle, which indicates indecisiveness between the bulls and bears.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that the short-term market texture is still into the positive side, but due to temporary overbought conditions we could see range bound activity in the near future.”

For the traders now, buying on dips and sell on rallies would be the ideal strategy. The 80,800-80,650 would be the key supports zone, while 81,400-81,600 could act as key resistance areas for the day traders. However, below 80,650 level, the sentiment could change. Below the same, traders may prefer to exit out from the trading long positions.

Prashanth Tapse, senior V-P (research), Mehta Equities, said:“The winning streak continued in the markets, but buying remained steady due to absence of any fresh euphoria while FIIs offloading shares has been hurting the sentiment.”

Vaibhav Vidwani, research analyst, Bonanza Portfolio, said: “The domestic market closed on a positive note on Thursday, with the Nifty-50 index finishing above 24,811 marking a modest gain for the day. The market’s positive sentiment was bolstered by optimistic global cues, particularly from the US markets, where the S&P-500 extended its winning streak, reflecting investor confidence amid expectations of potential interest rate cuts by the Federal Reserve. Investors may remain cautious ahead of Fed Chair Powell’s speech at Jackson Hole Symposium for any cues on rate cuts by the central bank.”

STOCK PICKS

Precision Camshaft | Buy: Rs236.75 | SL: Rs219 | Target: Rs275

Precision Camshaft is displaying strong momentum, supported by a recent uptick in volumes. The stock’s performance suggests a continued upward trend towards the target of Rs275. A potential pullback should be managed with a strict stop loss at Rs219, maintaining a cautious approach, while capitalizing on the momentum.

Adani Wilmar | Buy: Rs380.50 | SL: Rs370 | Target: Rs405 and Rs420

Adani Wilmar has shown a solid upward movement, with momentum supported by increasing volumes. The stock is well-positioned for a rally towards the targets of Rs405 and Rs420. A strict stop loss at Rs370 is advised to manage any downside risk while allowing for potential gains.

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

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