Non-Directional Bias May Continue

Mumbai: The benchmark indices bounced back sharply as BSE Sensex was up by 239 points. Among sectors, Media index outperformed rallied over two per cent whereas Metal index shed nearly one per cent. Technically, after a promising intraday rally one more time market witnessed a profit booking at higher levels. From the day, highest-level market shed nearly 1,000 points.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, the current market texture is volatile and short-term texture indicating non-directional activity is likely to continue in the near future.”

For the day traders now as long as it is trading above 77,200-77,000 buying on dips and sell on rallies would be the ideal strategy. On the higher side, 78,000-78,200 could act as crucial resistance areas for the bulls. However, below 77,000 traders may prefer to exit out from the trading long positions.

In this session the Indian stock market experienced a significant rebound, with the BSE Sensex soaring by over 239 points to close at 77,578, marking a 0.31 per cent increase. Nifty-50 also climbed, surpassing the 23,518 mark with a gain of approximately 0.28 per cent. This surge was driven by strong value buying after a prolonged downtrend

Vaibhav Vidwani, research analyst, Bonanza, said: “Key sectors contributing to this rally included auto and realty stocks, with major players. Domestic Institutional Investors significantly outpaced Foreign Institutional Investors in buying activity, which bolstered market sentiment. Despite this recovery, analysts remain cautious about future volatility due to high valuations and ongoing foreign selling pressures.”

STOCK PICKS

GL (Indraprastha Gas Ltd.)| TRADE-Buy: rs320.45 | SL: Rs300.00 | TARGET: Rs350

IGL is in an oversold zone with an RSI (14) at 16.61, significantly below the 30 level, indicating a potential reversal. The price action shows a strong base formation near ₹320, aligning with a key horizontal support level. The stock is attempting to stabilize within a falling wedge pattern, suggesting a bullish breakout may be forthcoming. MACD is on the verge of a crossover, further supporting upward momentum. With a favorable risk-reward ratio, a move towards ₹350 is likely, provided the ₹300 level holds as support.

MGL (Mahanagar Gas Ltd.) | TRADE-BUY: Rs1,126 | Stop Loss: Rs1,075 | Target: Rs1,200

MGL has entered deeply oversold territory, with RSI (14) at 16.57, pointing to an extended selling phase and potential for a technical rebound. The stock is testing a key demand zone near ₹1120, which aligns with a previous breakout level and a 200-day moving average support. The MACD histogram shows waning bearish momentum, signalling a possible reversal. The stock’s positioning within a consolidation band suggests limited downside risk and upside potential towards Rs1,200, making this a compelling buy opportunity with a solid risk-reward profile

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