Time For Level-Based Trading

Mumbai: On Wednesday, the benchmark indices witnessed a volatile trading session, with BSE Sensex down by 73 points. Among sectors, the IT index was the top loser, shed nearly three per cent, whereas selective private banks and auto stocks registered buying interest at lower levels.

Technically, after a positive opening, the market corrected sharply. However, it took support near 73,500 once again and reversed.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that the current market texture is volatile and non-directional. Hence, level-based trading would be the ideal strategy for day traders.” For traders now, 73,500 would act as a sacrosanct support zone. Above this level, the market could move up to 74,500-74700. On the flip side, a drop below 73,700 would make the uptrend vulnerable. Rajesh Sinha, Research Analyst, Bonanza said that Sensex ended at 74,102, marking a 0.02 per cent decline.

STOCK PICKS

Tata Motors| TRADE-BUY | CMP: Rs668 | SL: Rs650 | TARGET: 700

Tata Motors is gaining momentum, supported by strong buying interest at lower levels. The stock has rebounded from a key support zone, indicating a potential trend continuation. A breakout above Rs675 could accelerate the uptrend, pushing it towards Rs700 level. The overall structure remains positive, with auto stocks showing strength. A strict stop loss at Rs650 should be maintained to manage risk.

ICICI BANK | TRADE-BUY | CMP: Rs1,243 | SL: Rs1,220 | TARGET: Rs1,300

ICICI Bank is trading near a strong support zone, showing signs of accumulation and a potential breakout. The banking sector remains structurally positive, supporting further upside. A move above Rs1,250 could trigger fresh buying, taking the stock towards Rs1,300 level. With positive sentiment in banking stocks, ICICI Bank is well-positioned for an uptrend. A strict stop loss at Rs1,220 should be followed for risk management.

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