Market hovering in non-directional mode
72,900 would act as an immediate resistance zone, above the same, market could move up till 73,200-73,400. On the flip side, the index could slip till 72,000-71,700
image for illustrative purpose
Mumbai: On Monday, the benchmark indices witnessed a volatile trading session, after a roller-coaster activity as BSE Sensex was up by 105 points. Among sectors, Metal index was the top gainer, rallied over two per cent whereas IT stocks witnessed intraday selling pressure at higher levels, as a result IT index drag over 1.5 per cent.
Technically, after a muted opening, the market bounced back sharply, but it failed to close above 72,900 resistance mark, which is largely negative.
“We are of the view that, the current market texture is non-direction perhaps traders are waiting for the either side breakout. For the bulls now 72,900 would act as an immediate resistance zone,” says Shrikant Chouhan, head (equity research), Kotak Securities.
Above the same, the market could move up till 73,200-73,400. On the flip side, double bottom support placed at 72,300 below which, the index could slip till 72,000-71,700.
Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Markets ended off their intra-day highs in a volatile market amid gains in metal and auto stocks whereas profit-taking in IT stocks kept the upside limited. Broader markets, however, continued to stay under pressure mostly due to the stress test mandate by the Sebi for mutual fund schemes for small and mid-cap stocks.”
Technically, the confirmation of strength for Nifty can be seen once it breaches its biggest hurdle at 22,257 mark, while the index has support at 21,875 level.
Stock Picks
Tata Power
CMP: 392.75 | SL: 365 | Target: 435
The stock has successfully touched its major support mark of 370 on its trendline drawn on daily charts. Overhead resistance on the stock lies near the 435 mark, so we can expect the stock to gradually head towards that level. A strict stop-loss should be kept at the 365 mark for all existing long positions. A strong trend and volume pick-up are positive signs for the stock.
Tata Consumer
CMP: 1188.90 | SL: 1175 | Target: 1,225 and 1,250
The stock has touched a crucial trendline support on its 15-minute charts and is indicating a possible uptrend rally over time. At current levels, the downside risk is looking very limited as the stock trades around its major support levels. A strict stop-loss of 1,175 should be kept for all existing longs, and we can expect targets of 1,225 and 1,250 to be reached gradually over time.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
