Traders waiting for either side breakout
77,700 would be the immediate breakout level, above which the market could move up till 78,000-78,200 range; However, below 77,100pts, the market is likely to retest levels of 76,800-76,700
image for illustrative purpose
Mumbai: The benchmark indices continued range-bound activity as BSE Sensex was up by 141 points. Among sectors, Reality index outperformed rallied over two percent whereas Pharma and Auto indices witnessed intraday profit booking at higher levels.
Technically, after a muted opening entire day the market hovered between 77,100-77,600 levels. From last couple of days market witnessing narrow range activity which indicates indecisiveness between the bulls and the bears.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, the current market texture is non-directional perhaps traders are waiting for either side breakout on the higher side 77,700 would be the immediate breakout level while below 77,100 the selling pressure is likely to accelerate.” Above 77,700 level, the market could move up till 78,000-78,200 range. However, below 77,100 pts, the market is likely to retest level of 76,800-76,700pts.
Prashanth Tapse, senior V-P (research), Mehta Equities Ltd, said: “Markets were a bit volatile in early trades, but settled in positive territory to move in a range-bound manner thereafter as investors resorted to stock-specific selection after witnessing record-breaking spree over past few sessions.” Also, US indices were closed on Wednesday, and hence domestic investors were cautiously optimistic.
STOCK PICKS
PFC
Buy | CMP: 481.35 | SL: 470.00 | TARGET: 500.00 and 510.00
The stock has touched its anchor VWAP support mark of 476-480 on its daily time frame charts. With the overall risk-reward ratio favoring long positions and limited downside risk from current levels, a strict stop-loss can be set at the 470 mark. The stock can be considered for potential upside targets of 500.00 and 510.00. The RSI (14) on the daily time frame, being around 50.58, indicates that a momentum pick-up is likely in the next few days.
Cosmo First
Buy | CMP: 784.85 | SL: 750.00 | TARGET: 850.00 and 900.00
The stock has given a good breakout above its September 2023 highs and successfully managed to close above the same. With the RSI (14) around 81.72 and the stock witnessing a sharp surge in volumes, it appears to be a good buy. A stop-loss can be set at 750.00, with potential upside targets of 850.00 and 900.00.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
