Non-Directional Momentum May Continue
78,000 and 77,700 would be key support zones, while 78,700-78,900 could act as crucial resistance areas for traders; However, below 77,700 traders may prefer to exit long positions
Non-Directional Momentum May Continue
Mumbai: On Wednesday, the benchmark indices witnessed narrow range activity. BSE Sensex was down by 313 points. Among sectors, the Capital Market index was the top gainer, rallying over four per cent, whereas the Realty index shed over two per cent.
Technically, after a positive opening, the market registered intraday selling pressure at higher levels. However, the short-term texture of the market is still on the positive side. A small bearish candle formation on the daily charts and lacklustre intraday activity indicate the continuation of non-directional momentum in the near future.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that the current market texture is non-directional; hence, levels-based trading would be the ideal strategy for day traders.” On the downside, 78,000 and 77,700 would be the key support zones, while 78,700-78,900 could act as crucial resistance areas for traders.However, below 77,700 traders may prefer to exit their long positions.
STOCk PICKS
Lupin | TRADE-BUY|CMP: Rs2,185 | SL : Rs2,150 | TARGETs : Rs2,250 and Rs2,300
The stock has given a good breakout above its immediate resistance mark of Rs2,165 and successfully managed to close well above the same. With the stock looking all set for an upside move towards 2300 odd levels, we recommend a buy with strict stop loss of Rs2,150 on the same. Strong breakout with a good surge in volumes and a minor push in RSI makes the stock a good buy.
Cipla| TRADE-BUY | CMP: Rs1,436 | SL: Rs1,420 |TARGETs: Rs1,490 and Rs1,500
The stock has witnessed a solid breakout above its immediate resistance of Rs1,430 and has managed to sustain well above that level. With strong momentum in place and the potential to move towards Rs1,490 and Rs1,500 levels, we suggest a buy with a strict stop loss of Rs1,420. A breakout accompanied by rising volumes and a slight uptick in RSI makes the stock an attractive buying opportunity.
(Source: Riyank Arora, technical analyst at Mehta Equities)
