Market texture still non-directional
Buying on dips and sell on rallies would be the ideal strategy; Below 74,700 the sentiment could change, traders may prefer to exit out from the trading long positions
image for illustrative purpose
On Tuesday the benchmark indices witnessed lacklustre activity as NSE Nifty ends 44 points lower, while BSE Sensex was down by 220 points. Among sectors, buying was seen in selective Pharma and Metal stocks whereas Reality index lost the most shed over one per cent. Technically, after muted opening entire day market hovered in 75,100-75,580 range.
“We are of the view that the current market texture is non-directional. On the downside 74,900-74,700 would be the key support zones while 75,500-75,700 could be the crucial resistance areas for the day traders,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.
For the day traders now, buying on dips and sell on rallies would be the ideal strategy. However, below 74,700 the sentiment could change. Below the same, traders may prefer to exit out from the trading long positions.
Woes deepened as it fell for the third consecutive day, mirroring investor anxiety surrounding upcoming events like exit polls and US GDP data.This nervousness sent the volatility index, India VIX, soaring to a two-year high, indicating a jittery market.
“While most sectors felt the heat, a few stocks like Divi’s Labs defied the trend and emerged as gainers. On the flip side, Adani Ports found itself at the bottom of the pile, leading the pack of losers,” says Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.
STOCK PICKS
Tata Power
CMP: 436.90 ; SL: 425 ; TARGET: 450 and 455
The stock has touched its anchor VWAP support mark of 435 on its daily time frame charts, with immediate support near the 430.00 mark and immediate resistance at 450. The stock looks like a strong buy at current levels, with a strict stoploss of 425 for potential targets of 450 and 455. With the RSI (14) near the 52 mark, the overall momentum is expected to pick up in the upcoming trading sessions.
BEL
CMP: 289 ; SL: 283 ; TARGET: 297.50 and 302.50
The stock has touched an important anchor VWAP support mark of 285 on its daily time frame charts. With the RSI (14) near 77 on the daily charts, the overall momentum looks strong. The stock is poised for an upside move towards 297.50 and 302.50, with a strict stoploss at the 283.00 mark to manage risk well on the trade.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
