Mkts hovering in indecisiveness mode

Mumbai: On Tuesday, the benchmark indices witnessed lacklustre activity, the Sensex was down by 4 points. Among sectors, buying seen in selective consumer and financial stocks whereas Media index shed over one per cent. Technically, after a muted opening entire day market hovered between 82,400 to 82,675.A small candle on daily charts and non-directional activity on intraday charts showing indecisiveness between the bulls and the bears. Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that the current market texture is non-directional, perhaps traders are waiting for either side breakout. For the day traders now, 82,900 would be the immediate breakout level. Above the same, the market could rally up to 83,300-83,500. On the flip side, dismissal of 82,300 may trigger intraday correction. Below 82,300, the chances of hitting 82,000 would turn bright. Further downside may also continue which could drag the market till 81,750.”

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Markets ended flat in a lacklustre trading session as investors exercised caution on the back of weak Asian and European cues. Also the markets have been hitting new highs in the recent upsurge. Hence, investors are a bit sceptical about taking further bullish bets.”

Indian stock markets closed on a sideways note, with BSE Sensex 50 climbing to 82,555. Investors are opting cautious approach as they are waiting for plethora of information that might impact the magnitude of interest rate reductions in the US later this month,” says Vaibhav Vidwani, research analyst, Bonanza Portfolio.

STOCK PICKS

OFSS | Buy | CMP: Rs11,455 | SL: Rs11,300 | Target: Rs12,000+

OFSS has recently broken out above the Rs11,443 resistance level, signalling a bullish trend. The RSI (14) on the daily charts is near 65, which indicates strong momentum. This technical setup suggests the stock is poised for further upside. The stop loss is placed just below recent support, providing a good risk-reward ratio. A target of Rs12,000+ is achievable in the near term.

JK Cement | Buy | CMP: Rs4,647 | SL: Rs4,555 | Target: Rs4,800+

JK Cement has broken out above the crucial Rs4,600 level, confirming a strong uptrend. The RSI (14) is close to 68, reflecting strong momentum on the daily charts. This breakout, coupled with robust momentum, supports a bullish outlook. The stop loss is strategically set below the breakout level to minimize downside risk. With positive technical indicators, the stock is likely to go above Rs4,800.

(Source_Riyank Arora Technical Analyst at Mehta Equities)