Non-Directional Trading May Continue

Mumbai: On Monday, the benchmark indices witnessed a roller-coaster activity as BSE Sensex up by 499 points. Among sectors, the Realty index outperformed, rallied by 1.50 per cent, while selective Auto stocks experienced intraday profit booking at higher levels.

Technically, after a gap-up opening, the market exhibited range-bound activity throughout the day. It also formed an inside body candle on the daily charts, which indicates indecisiveness between the bulls and bears.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that non-directional activity is likely to continue in the near future. Hence, a level-based trading would be the ideal strategy for day traders.” For traders now, 78,300 and 78,000 will act as key support zones, while the 200-day SMA or 78,800 and 79,300 could serve as key resistance areas for the bulls.

Stocx Picks

Ultra Tech Cement |TRADE-CMP: Rs11,472 | SL: Rs11,000 | TARGET: Rs12,000

The stock has rebounded from its Anchor VWAP support zone near Rs11,400, aligning with a key horizontal support level. A breakout above the descending trendline resistance confirms re-newed bullish momentum. The ongoing uptrend, reinforced by strong volume inflow, suggests further upside potential. Positive sentiment from favourable news flow supports the likelihood of achieving the projected targets.

IGIL| TRADE-CMP: Rs483 | SL: Rs465 | TARGET: Rs525 and Rs550

The stock has established a solid base near the Anchor VWAP support zone at Rs480, holding above the 20-day moving average. A breach of Rs490, the immediate resistance, would signal a continuation of the bullish trajectory. The upward-sloping trendline from recent lows reinforces the stock’s positive structure. With a tight stop loss, the trade offers an excellent risk-reward ra-tio for a move toward higher levels.

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