Traders Await Directional Breakout

Mumbai: On Wednesday, the benchmark indices experienced limited movement, BSE Sensex was up by just 16 points. Among sectors, selective financial stocks registered buying interest at lower levels, whereas the PSU Bank index lost the most, shedding nearly one per cent.Technically, on daily charts, the index has formed a small candle formation, which suggests indecisiveness between the bulls and the bears.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that the current market texture is non-directional; traders are perhaps waiting for a breakout in either direction. On the upside, if the market breaks above 81,700, it could rise to a range of 82,000-82,200.” Conversely, a decline below 81,000 might lead to increased selling pressure. Below the same, it could retest the levels of 80,700-80,500.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “The Indian stock market closed with minimal movement, reflecting cautious investor sentiment ahead of key US inflation data. The BSE Sensex settled at 81,526, up just 16 points.” The session saw a mixed performance across sectors, with gains in FMCG and auto stocks, while the banking sector experienced selling pressure.Notable gainers included Bajaj Finance and UltraTech Cements, whereas HCL Tech and Wipro were among the top losers. Market participants remain cautious as they await crucial economic indicators that could influence future Federal Reserve policy decisions, contributing to the flat trading environment today, said Vaibhav Vidwani, Research Analyst, Bonanza.