Mkt Remains In Indecisiveness Mode

Mumbai: On Wednesday, the benchmark indices witnessed intraday recovery, with BSE Sensex down by 123 points. Among sectors, the Capital Market and PSU Bank indices gained over one per cent, whereas Realty index was the top loser, shedding over 2.79 per cent.

Technically, after an early morning intraday correction, the market defended the 75,400 support zone and bounced back sharply. From the day’s lowest levels, it rallied nearly 780 points. Additionally, it formed a long-legged Doji candle formation, which indicates indecisiveness between bulls and bears.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that as long as the market is trading above 75,500, the pullback formation is likely to continue. On the higher side, it could bounce back to the 76,700-76,800 range.”

Conversely, if it falls below 75,500, selling pressure is likely to accelerate. If that happens, the market could retest the 75,000 level. Further downside movement may also persist, potentially dragging the market down to 74,700.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Markets were extremely choppy and gyrated sharply in intra-day trades. After crashing over 900 points in early trades, markets recouped lost ground in late trades, but select profit-taking in IT, banking and auto stocks saw benchmarks end marginally lower.”

Due to rising uncertainty in global and domestic markets coupled with falling rupee and fund outflows, investors are trading cautiously and placing safe equity bets.

STOCK PICKS

Reliance Industries | TRADE-Buy | CMP: Rs1,216 | SL: Rs1,205 | TARGETs: Rs1,250 and Rs1,265

Reliance Industries is maintaining a short-term bullish trend after surpassing key resistance levels. The stock is trading above its 5-day and 10-day SMAs, indicating continued buying interest. However, it remains below the 50-day SMA, suggesting a cautious approach in the medium term. RSI is approaching overbought levels, indicating a potential pullback. A breakout above Rs1,250 could lead to Rs1,265, while a drop below Rs1,205 may reverse the trend.

HDFC Bank |TRADE-SELL | CMP: Rs1,706 | SL: Rs1,720 | TARGETs: Rs1,675 andRs1,655

HDFC Bank is experiencing short-term bearish pressure, trading below its 10-day and 50-day SMAs. The stock’s inability to hold above key resistance levels indicates potential downside movement. RSI at 60 suggests neutral to slightly bullish momentum, but a break below Rs1,675 could accelerate selling pressure. Immediate support is seen at Rs1,655, and if breached, further downside is expected. Traders should watch for a move above Rs1,720 to reassess the trend.

(Source: Riyank Arora, technical analyst at Mehta Equities)