Mkt still hovering in non-directional mode 72.5k may act as a trend decider level

Mumbai: On the account of February monthly F&O series expiry day, the benchmark indices witnessed volatile momentum, after a roller-coaster activity, BSE Sensex was up by 195 points. Among sectors, media and healthcare stocks witnessed intraday selling pressure whereas PSU Bank index outperformed rallied over one per cent.

Technically, after early morning intraday correction the market took the support near 20-day SMA (Simple Moving Average) and reversed. However, the short-term texture of the market is still non-directional. “For the bulls now, 20-day SMA (Simple Moving Average) or 72,500 would act as a trend decider level. Above 72,500, the market could bounce back till 72,800-73100 range,” says Shrikant Chouhan, head (equity research), Kotak Securities. On the flip side below 72,500 points, the selling pressure is likely to accelerate. Below the same, the market could retest the level of 72,100-72,000.

Prashanth Tapse, senior V-P (research), Mehta Equities, says: “While the markets moved in a range with a mixed bias in intra-day trades, investors covered their short positions by resorting to selective buying on the F&O expiry day. Investors would be closely watching the US inflation reading, which can give some indication on Fed’s possible rate cut move in the medium term.” Overseas fund inflows have been volatile over the past couple of months due to global market uncertainty and slowdown fears. Hence, local investors will try to maintain caution with selective bullish bets.