Market texture still non-directional
75,125 would act as a trend-deciding level; Above that, the market can move towards 75,350-75,500-75,800; Below 74,650, the market may retest 74,300-74,200 levels
image for illustrative purpose
Mumbai: On Tuesday, the benchmark indices witnessed a profit booking at higher levels as BSE Sensex was down by 55 points. Among sectors, Metal index outperformed, rallied over one per cent whereas Media index shed over one per cent. Technically, on daily charts, the index has formed a bearish candle which indicating temporary weakness from the current levels.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “For day traders now, the 75,125 would act as a trend-deciding level. Above that, the market can move towards 75,350-75,500-75,800.”
On the other hand, below 74,650, the market may retest 74,300-74,200 levels. The intraday market texture is non-directional. Hence, level-based trading would be the ideal strategy for the day traders Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Sensex and Nifty scaled new lifetime highs on the auspicious day of Gudi Padwa, but markets erased all its gains to end flat with a negative bias on select profit taking. While fundamentals continue to be strong, stretched valuations will allow investors to book profit at regular intervals.”
Investors would still be mindful of rising crude prices and US Fed’s inability to cut rates amid stubborn inflation, which could fuel uncertainty going ahead.
Stock Picks
Anand Rathi
CMP: 4072.10 | Stop loss: 3,900 | Target: 4,500
The stock has given a good breakout above its recent swing high of 4,050 and managed to close above it. With volumes on the stock being nearly 2 times its 30-day average traded volume, the momentum looks strong, and the stock is poised for an upside move towards 4,500 and above with a set stop loss at the 3900 mark.
TATA Motors
CMP: 1008.50 | Stop loss: 975 | Target: 1,100
The stock has given a good breakout above its anchor VWAP resistance mark of 995 and successfully managed to close above it. With the stock price witnessing some pullback and revisiting its anchor VWAP support zone, the stock looks poised for an upside towards 1,100 and above with a set stop loss at the 975 mark.”
(Source_Riyank Arora Technical Analyst at Mehta Equities)
