Mkts hovering in non-directional trading

The benchmark indices on Monday witnessed narrow range activity as NSE Nifty ended 25 points higher, while BSE Sensex was closed at 62,970pts. Among sectors, pharma and healthcare stocks outperformed, both the indices rallied over one per cent.

Technically, after a short-term correction the index witnessed range-bound activity near 62,850 levels or 20-day SMA (Simple Moving Average) important support level.

“We are of the view that, currently the market is witnessing non-directional activity; perhaps traders are waiting for either side breakout,” says Shrikant Chauhan of Kotak Securities.

For the day traders now, 63,100pts would be the key resistance level, while 62,850pts could be the crucial support zone. Above 63,100pts, we could see fresh uptrend rally till 63,400-63,500.

On the flip side, below 62,850 levels selling pressure is likely to accelerate. Below which, the market could slip till 62,600-62,500 levels.

STOCKS PICKS

1. HEROMOTOCO: Buy, CMP Rs2,849.8, Target Rs2,990, SL Rs2,790

The stock is seen coming out of the consolidation phase with a range breakout. The formation and rising volume activity indicates further uptrend from the current levels in the coming trading sessions.

2. LTIM: Buy, CMP Rs5,009.95, Target Rs5,250, SL Rs4,910.

On the daily scale, the stock is trading in an Ascending Triangle chart formation and a breakout from the pattern is possible in the coming session for further upward movement.

3. HDFCLIFE: Buy, CMP Rs630, Target Rs660, SL Rs615.

After witnessing some sell-off from higher levels, the stock is hovering near its retracement zone. The structure of the chart indicates a revival of uptrend in the counter from current levels.

(Source: Kotak Securities)