Short-Term Market Texture Still Positive

Mumbai: On Tuesday, the benchmark indices witnessed some profit booking at higher levels. BSE Sensex was up by 33 points. Among sectors, the IT index was the top gainer, gained nearly one per cent, whereas profit booking was observed in the Defence and PSU Bank indices, both of which shed nearly two per cent.

Technically, after an early morning intraday rally, the market witnessed profit booking at higher levels. On the daily charts, a shooting star kind of formation has formed, indicating potential weakness from the current levels.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that after a promising uptrend rally, the market is currently experiencing some profit booking at higher levels. However, the short-term texture of the market remains positive.”

For day traders, 77,700 would be the key support zone. Above this level, the market could retest the range of 78,300 to 78,500. On the flip side, a dismissal of 77,700 could alter market sentiment. Below this level, the market could slip to 77,300-77,200.

Also, the moderating domestic inflation and hopes of further cuts in interest rates have temporarily offset the concerns of tariff-related global uncertainty.

Vaibhav Vidwani, Research Analyst, Bonanza, said: “The Indian stock market experienced a mixed day on March 25, with the major indices closing on a relatively flat note after a volatile session.” The Nifty Next-50 index also experienced a decline of 1.47 per cent during the day, closing at 62,703.75. Overall, while the market’s momentum has been building up, sustainability of the rally remains a concern amidst global economic uncertainties.

STOCK PICKS

Federal Bank | TRADE-BUY | CMP: Rs193-196 | SL: Rs192 | TARGET: Rs205

Federal Bank is showing strong support near Rs192, with buying interest picking up at lower levels. The stock has been consolidating and is now attempting an upward breakout. A move above Rs196 could trigger further upside momentum towards Rs205. The banking sector remains strong, adding to the positive outlook. Maintain a strict stop loss at Rs192 for risk control.

Concor | TRADE-BUY | CMP: Rs712-717 | SL: Rs700 | TARGET: Rs740, Rs750

Concor is witnessing a strong accumulation, indicating potential for an upward move. The stock is holding well above key support zones, and a break past Rs720 could fuel a rally towards Rs740-750. Positive sentiment in the logistics sector further strengthens the bullish case. A stop loss at Rs700 should be maintained to manage downside risk.

(Source: Mehta Securities)