Short-Term Texture Of Market Still Positive

Mumbai: On Tuesday, the benchmark indices witnessed range bound activity with Sensex falling down by 105 points. Among sectors, digital and IT indices rallied over 1 per cent whereas auto index lost the most, shedding over 1 per cent. Technically, after a promising pullback rally, market registered some profit booking at higher levels. However, the short-term texture of the market is still into the positive side.

Shrikant Chouhan of Kotak Securities, said: “We are of the view that, the range bound structure is likely to continue in the near future. Hence buying on intraday correction and sell on rallies would be the ideal strategy for the day traders.”

For short term, 79,400-79,000 would be key support zone while 80,500 and 80,900 could be the profit booking areas for the bulls. However, below 79,000, traders may prefer to exit from the trading long positions.

Prashanth Tapse, Senior VP-Research, Mehta Equities, said: “Weakness in European and Asian markets weighed on the sentiment as key indices languished in negative territory through the session despite a firm start. Investors exercised caution and trimmed their equity exposure ahead of the monthly expiry on Thursday.”

There is still a lot of apprehension among the investors as FII outflows have continued for almost two months now. Vaibhav Vidwani, Research Analyst, Bonanza, said: “The Indian stock market closed on a positive note today, with the BSE Sensex rising by over 105 points to finish at approximately 80,004. Despite some volatility, the market was buoyed by strong performances in the IT and FMCG sectors, which helped offset declines in other areas such as auto.”

STOCK PICKS

L&T Technology Services (LTTS) TRADE-BUY| CMP: Rs5489.70 | SL: Rs5320.00 | TARGET: Rs5800.00

LTTS has witnessed a breakout above the Rs5424 level, supported by a sharp surge in trading volumes, indicating strong bullish momentum. The breakout suggests that the upside is open, with a potential target of Rs5800. The stock maintains a positive trend, making it attractive for further accumulation. A strict stop loss at Rs5320 is recommended to manage downside risks.

Siemens | TRADE-BUY | CMP: Rs7242.50 | SL: Rs7150.00 | TARGET: Rs7750.00

Siemens has broken out above the Rs7227 anchor VWAP mark, driven by a significant increase in trading volumes. This breakout confirms a bullish setup, with a potential upside target of Rs7750. The stock exhibits robust momentum, making it favorable for near-term gains. Traders are advised to maintain a stop loss at Rs7150 to protect against any adverse moves.

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