Mumbai: On Wednesday, the benchmark index Nifty registered a fresh all time high, but witnessed a profit booking at higher levels. BSE Sensex was up by 150 points. Among sectors, Media index was the top gainer, rallied two per cent whereas selective FMCG and Auto stocks witnessed intraday profit booking at higher levels. Technically, after a strong opening due to profit booking, it failed to sustain above mark. A small bearish candle on daily charts indicates profit booking is likely to continue in the near future.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that the short-term market texture is positive, but a fresh uptrend rally possible only after dismissal of 77,000 Post 77,000 breakout the market could rally till 77,300-77,400.”

On the flip side, 76,300 would be the key support level for the day traders. Below which traders may prefer to exit out from the trading long positions. Below 76,300 market could slip till 76,000-75,800.

“Markets failed to capitalise on its firm start but eked out modest gains on select buying support, as cautioned prevailed amongst investors ahead of US policy rate meeting later in the day,” says Prashanth Tapse, senior V-P (research), Mehta Equities Ltd. Besides, investors would be watchful of domestic inflation & IIP data which can give a sense about where the domestic growth is headed in the medium term. If US inflation shows signs of cooling, Federal Reserve’s commentary on interest rate direction would be keenly watched by global investors.

STOCK PICKS

Indian Railway Catering and Tourism Corporation Ltd(IRCTC)

Buy | Current Market Price: ₹1,026.95 | Stop Loss: ₹965 | Target: ₹1,125

The stock has exhibited a robust breakout from its triangular consolidation pattern on the hourly charts. With trading volumes nearly 1.5 times the 30-day average and a favorable outlook for railway stocks, coupled with a slight uptick in the RSI (14) on the daily chart, the stock seems set for an upward move towards ₹1,125 and beyond. However, it’s crucial to maintain a strict stop loss at ₹965 to effectively manage risk in this trade.

Happiest Minds Technologies Ltd

Trade: Buy| Current Market Price: ₹890.15 | Stop Loss: ₹875 | Target: ₹975

The stock has achieved a significant breakout above its trendline resistance at ₹885 on the weekly charts. With the RSI (14) exceeding the 70 mark and Wednesday’s trading volumes nearly double the 30-day average, strong momentum is evident. The stock seems poised for an upward move towards ₹975 and beyond. However, to manage risk effectively, it’s crucial to maintain a strict stop loss at ₹875.

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

CMP (Current Market Price); SL (Stop Loss)/All prices in Rs