Market in non-directional activity
On last Wednesday, the benchmark indices witnessed lackluster activity, BSE Sensex was down by 10 points.
image for illustrative purpose
Mumbai: On last Wednesday, the benchmark indices witnessed lackluster activity, BSE Sensex was down by 10 points. Among sectors, profit booking was seen in FMCG and consumer stocks whereas some buying interest was seen in selective metal stocks. Technically, after a sharp sell off the market witnessed narrow range activity near important support level.
"We are of the view that, currently the market is witnessing non-directional activity perhaps, traders are waiting for the either side breakout. For the bulls again 60,500 would be the important breakout level to watch. And if, the stock manages to close above the same, we can expect quick uptrend rally towards 60,800-61,000," says Shrikant Chauhan of Kotak Securities. On the flip side, trading below 59,800 may increase further weakness up to 59,600-59,500.
Stock Picks
UPL: The stock today managed to close below short term moving averages with a confirmation on negative divergence with RSI and MACD. Futures can be sold positionally for target of Rs695 with stop loss at Rs728.
AXISBANK: The stock has shown some negative divergence with RSI and MACD and also closed below 5-day average for the first time in last seven sessions. Stock futures can be short positionally for the target of Rs921 and stop loss at Rs961.
(Source-Kush Ghodasara)
