Market hovering in sideways trading

Mumbai: The benchmark indices on Thursday continued a range-bound activity as BSE Sensex was up by 224 points. Among sectors, Capital Market Index was the top gainer, rallied nearly four per cent whereas Media, Healthcare and Pharma indices shed over one per cent.

“Technically, after a long correction from last two days market witnessing range-bound activity,” says Shrikant Chouhan, head (equity research), Kotak Securities. On the higher side, 76,800 would be the key level to watch out, above the same market could bounce back till 77,100-77,200.

On the other side, below 76,300 level, the selling pressure is likely to accelerate. Below the same, market could retest the level of 75,900. Further down side may also continue which could drag the index up to 75,700.

Vaibhav Vidwani, research analyst, Bonanza, said: “Today, the Indian stock market exhibited a positive trend, with the BSE Sensex rising by 318 points to close at 77,042, while the Nifty50 gained 98 points, reaching 23,311. This upward movement was bolstered by favorable global cues, particularly from the US markets, which saw significant gains following lower than-expected inflation data and strong earnings reports from major banks.”

Investor sentiment was further supported by expectations surrounding upcoming Q3 earnings from key companies like Reliance Industries and Infosys. Sector-wise, stocks in PSU Bank, power, realty, and metals led the gains, while FMCG stocks faced some pressure. The broader market reflected this trend, with midcap and smallcap indices also closing higher.

Reliance Industries

CMP: 1,266 / Buy / SL: 1,240 / Target: 1,300

The stock has broken out above its anchor VWAP resistance mark of 1,250 and successfully managed to close well above the same. With a major support being near 1,240, the said level should serve as a strict stop loss for potential upside targets of 1,300 and above.

HDFC Bank

CMP: 1,652 / Buy / SL: 1,630 / TGT: 1,680

The stock is holding up well within a consolidation range zone of Rs1,640-1,660 since last few days. With volumes being steady and stock indicating strong momentum pick up signs, it appears to be a good buy with SL of Rs1,630 for potential upside targets of Rs1,680 and above.

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