Market Hovering In Indecisive Mode

Mumbai: In the last session of the week, the benchmark indices witnessed profit booking at higher levels. After a roller coaster of activity, the Sensex was up by 500 points.

Among sectors, the Defence, Capital Market, and PSU Bank indices gained the most. The Defence index rallied by 2.32, Capital Market and PSU Banks gained over 2 percent. In contrast, the Media index was the top loser, shed 4.90 per cent.

Technically, after a promising uptrend rally, the market faced resistance near 78,740 and reversed. Additionally, on the weekly charts, it formed a Doji candlestick formation, indicating indecisiveness between the bulls and bears.

Amol Athawale, Kotak Securities, said: “We believe that the market is currently experiencing selling pressure at higher levels.” However, the short-term sentiment remains positive.

For traders, 78,200 would be a key level to watch. As long as market is trading below the same, market could retest the level of 77,100. Further weakness could also drag the market down to 76,600. Conversely, if the market rises above 78,200, it could bounce back to 78,800. A dismissal of the 78,800 breakout could push the market towards 79,300.

Vaibhav Vidwani, Research Analyst, Bonanza, said: “The Indian stock market closed on March 28, with notable declines, as the BSE Sensex fell by 191.51 points) to 77,414.92 to 23,519.35. Investor sentiment was dampened by concerns surrounding US economic indicators and trade policies, particularly the anticipation of U.S. Personal Consumption Expenditures (PCE) inflation data, which could influence Federal Reserve interest rate decisions later in the year.”

This uncertainty led to cautious trading and widespread selling across sectors. This external pressure exacerbated a risk off attitude among Indian investors, with sectors such as IT and auto witnessing declines of up to 1 per cent.

STOCK PICKS

Tech Mahindra | TRADE-BUY | CMP: Rs1,411 | SL: Rs1,360 | TARGET: Rs1,480

Trading at Rs1,411, Tech Mahindra’s RSI of 34 signals oversold conditions, indicating a potential rebound. Strong support near Rs1,360 makes it a favourable buy on declines. A recovery from current levels could push the stock toward Rs1,480, especially if RSI surpasses 40. To mitigate downside risk, traders should maintain a strict stop loss at Rs1,360.

DOMS | TRADE-BUY | CMP: Rs2873 | SL: Rs2800 | TARGET: Rs3000

At Rs2,873, DOMS exhibits neutral-to-bullish momentum with an RSI of 58. The stock remains in an uptrend, with Rs2,800 serving as key support. A decisive move above Rs2,900 could strengthen the rally toward Rs3,000. However, a drop below Rs2,800 might weaken sentiment and trigger selling pressure.

(Source: Riyank Arora, Technical Analyst at Mehta Equities)