Market texture is non-directional
For now, 80,100 would be key resistance, above which index could move upto 80,400-80,600. On flip side, dismissal of 79,730 may retest 79,500-79,200, below 79,000 traders may exit long positions
image for illustrative purpose
![Market texture is non-directional Market texture is non-directional](https://www.bizzbuzz.news/h-upload/2024/07/09/1925364-markets.webp)
Mumbai: On Monday, the benchmark indices witnessed a lacklustre activity as NSE Nifty ends three points lower, while BSE Sensex was down by 36 points. Among sectors, FMCG index outperformed, rallied over 1.5 per cent whereas PSU Bank index lost the most, shed 1.5 per cent. Technically, after a muted opening entire day the market hovered between 79,730 and 80,000 levels. Intraday non-directional activity was indicating indecisiveness between the bulls and the bears.
“We are of the view that, the intraday market texture is non-directional, perhaps traders are waiting for either side breakout,” says Shrikant Chouhan, head (equity research), Kotak Securities.
For the bulls now, the 80,100 would be the key resistance level. Post 80,100 level, the index could move up 80,400-80,600. On the flip side, dismissal of 79,730 may accelerate selling pressure. Below which, the market could retest the level of 79,500-79,200.
However, below 79,000 traders may prefer to exit out from the trading long positions. For Bank Nifty, 52,000 would be the sacrosanct support level. As long as it is trading above the same, the bullish sentiment is likely to continue. On the higher side 53,500-53,800 could be the immediate resistance areas for traders.
“Due to lack of any fresh trigger, markets witnessed a range-bound session throughout the day and ended marginally weak owing to select profit-taking in banking, telecom and realty shares. Weak Asian cues also weighed on sentiment, while stretched valuations could see investors maintain caution for sometime,” says Prashanth Tapse, Senior VP (Research), Mehta Equities.
STOCK PICKS
REC LTD- Buy | CMP: 607.60 |SL: 590 |Target: 630
REC LTD has reached its resistance zone of 604.50 to 607.80 on the daily time frame charts. Considering the overall technical set-up, the stock appears to be a good buy at current levels. A strict stop loss should be set at 590, aiming for potential upside targets of 625 and 650.
ONGC- Buy |CMP: 299.15 |SL: 290 |Target: 325
ONGC has achieved a strong breakout above its recent resistance mark of 292.95 and successfully closed above this level. The robust technical structure, combined with increased volume, indicates potential for a significant upward move. Maintain a strict stop loss at 290, with potential upside targets of 325 and higher.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/ All prices in Rs