Market in range-bound trading
73,700 and 74,100 would act as key levels to watch out, above 74,100 the market could rally till 74,500-74,600 and below 73,700, the chances of hitting 73,500-73,200
image for illustrative purpose
Mumbai: On Tuesday, the benchmark indices witnessed a range-bound activity as BSE Sensex was down by 110 points. Among sectors, buying was seen in reality, consumer and metal stocks whereas selling pressure continued in IT stocks.
Technically, after a muted opening entire day, the index hovered between 73,750 and 73,900 points. From last two days the market witnessing range-bound activity. “For the traders now, the 73,700 and 74,100 would act as key levels to watch out,” says Shrikant Chouhan, head (equity research), Kotak Securities.
On the higher side, above 74,100 the market could rally till 74,500-74,600. On the flip side, dismissal of 73,700 could accelerate the selling pressure. Below 73,700, the chances of hitting 73,500-73,200 would turn bright.
Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Markets witnessed select profit taking in banking and IT stocks as caution prevailed throughout the session ahead of the RBI monetary policy decision on Friday. Rising US bond yields have led to FIIs fleeing Indian equities in recent sessions.”
However, we are seeing renewed optimism in the broader market in the mid- & small-cap stocks after the sharp correction over the past few months. There is a lot of money waiting on the sidelines to be invested in medium enterprises amid easing valuations and hopes of strong economic growth going ahead.
Stock Picks
City Union Bank (Buy)
CMP: 144.80 | SL: 137.50 | Target: 154.00
The stock has given a good breakout above its anchor VWAP resistance mark of 141.10 on its daily and weekly charts. The overall structure is looking to be extremely bullish, with all the momentum indicators and oscillators indicating a good surge in uptrend rally. Overhead targets of 154 and above can be expected with a set stop-loss at the 137.50 mark in City Union Bank
IRCTC (Buy)
CMP: 1003.80 | SL: 965 | Target: 1,050
The stock has given a good breakout above its recent swing high resistance mark of 989.90 on its daily charts. Strong momentum and volume pick up, with an overall positive outlook on railway stocks, make the stock an interesting buy at current levels for potential upside targets of 1,050 and above with a strict stop-loss set at the 965 mark
(Source_Riyank Arora Technical Analyst at Mehta Equities)
