Range-bound trading likely

Mumbai: On the monthly F&O expiry day, the market witnessed a volatile trading session, after a rollercoaster activity, BSE Sensex was up by 349 points.

Among sectors, Oil and Gas index gained 0.80 per cent whereas intraday profit booking was seen selective metal and pharma stocks. Technically, on daily charts, the index has formed small bullish candle and on intraday charts it is holding higher high and higher low formation, which is largely positive.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, the larger market texture is positive, but due to temporary overbought conditions we could see range bound activity in the near future.”

For the traders now, the 81,650 would be the crucial support zone. Above the same, the market could move up till 82,500-82,700 level. On the flip side, below 81,650 level, the sentiment could change. Below the same, we could see one quick intraday correction till 81,200-81,000 range.

Markets were back in action on the expiry day after range-bound sessions, as benchmark indices hit fresh intra-day lifetime highs led by gains in Reliance Industries, which announced a 1:1 bonus issue. “Markets were volatile and had slipped into the red in mid-session, but rebounded in late trades as investors cheered the bonus issue announcement by RIL in its AGM which led to buying action in other select frontline stocks.,” says Prashanth Tapse, senior V-P (research), Mehta Equities.

STOCK PICKS

Tata Motors | Buy: Rs1,121.65 | SL: Rs1,095 | Target: Rs1,150 - Rs1,160

Tata Motors is showing strong momentum with recent positive price action, supported by increasing volumes. The stock is well-positioned for further gains, targeting Rs1,150 and Rs1,160. A strict stop loss at Rs1,095 is recommended to manage downside risk while capitalizing on the potential upside.

Bajaj Finserv | Buy: Rs1,755 | SL: Rs1,725 | Target: Rs1,815 - Rs1,844

Bajaj Finserv presents a compelling buying opportunity at current levels, with the stock poised to move higher towards the targets of Rs1,815 and Rs1,844. With strong technical indicators and an improving trend, it is advisable to maintain a strict stop loss at Rs1,725 to protect against potential downside while aiming for the anticipated gains.

(Source_Riyank Arora Technical Analyst at Mehta Equities)