Traders Waiting For Either Side Breakout

Mumbai: On Tuesday, the benchmark indices continued to exhibit a narrow range-bound activity, with BSE Sensex down by 67 points. Among sectors, selective auto stocks saw buying interest at lower levels, while the metal and PSU bank indices experienced intraday profit booking at higher levels.

Technically, after a muted opening, the market witnessed a range-bound activity throughout the day, it also formed a small inside body candle on the daily charts. Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that the current market texture is non-directional, as traders seem to be waiting for a breakout in either direction.”

On the upside, 78,800 would be the immediate breakout level for the bulls. If surpassed, the market could rally up to 79,100-79,300. Conversely, selling pressure is likely to accelerate below 78,200, with the market potentially slipping to 78,000-77,800.

Stock Picks

Ultra tech cement| TRADE-BUY | CMP: Rs11,472 | SL: Rs11,000 | TARGET: Rs12,000

The stock has rebounded from its Anchor VWAP support zone near Rs11,400, aligning with a key horizontal support level. A breakout above the descending trendline resistance confirms renewed bullish momentum. The ongoing uptrend, reinforced by strong volume inflow, suggests further upside potential. Positive sentiment from favourable news flow supports the likelihood of achieving the projected targets.

IGIL| TRADE-BUY | CMP: Rs483 | SL: Rs465 | TARGETs: Rs525 and Rs550

The stock has established a solid base near the Anchor VWAP support zone at Rs480, holding above the 20-day moving average. A breach of Rs490, the immediate resistance, would signal a continuation of the bullish trajectory. The upward-sloping trendline from recent lows reinforces the stock’s positive structure. With a tight stop loss, the trade offers an excellent risk-reward ratio for a move toward higher levels.

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