Volatility may continue
79,800 will act as a trend decider level, above the same pullback formation is likely to continue; On the higher side, the market can move towards 80,800 level
image for illustrative purpose
Mumbai: Benchmark indices witnessed a volatile trading session on Tuesday, Sensex was down 73 points. Among sectors, the FMCG index outperformed with a gain of 3 per cent, while the Realty index fell the most, falling 2.40 per cent. Technically, the market fell below the 20-day SMA (Simple Moving Average) due to sharp intraday selling, but it eventually found support near 79,225 and bounced back sharply. The intraday market structure which shows volatility is likely to continue in the near future.
Shrikant Chouhan, head, (equity research), Kotak Securities, said:
“Now, for day traders, the 20-day SMA or 79,800 will act as a trend decider level.
As long as the index is trading above the same, the pullback formation is likely to continue.”
On the higher side, the market can move towards 80,800 levels. On the dismissal of 81,000, we could see the market moving towards 81,600-82,000.
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “There was a knee-jerk reaction during the Budget speech as Sensex plunged more than 1,000 points after FM increased LTCG and STCG rates along with higher STT on F&O transactions, which had caught investors off guard.
However, both key benchmark indices erased almost all of its losses to end marginally lower as the government’s focus on lower fiscal.”
STOCK PICKS
COFORGE| Buy | CMP: 6179.35 | SL: 5,800 | TARGET: 6,650 and 6,700
The stock has successfully broken above its recent swing high resistance level of 6,143.90 and is maintaining its position above this mark. With an increase in trading volumes and the RSI (14) approaching 70, we anticipate potential targets of 6,650 and 6,700.
Persistent System| Buy | CMP: 4,810.15 | SL: 4,490 | TARGET: 5,100 and 5,200
The stock has broken above its all-time high resistance level and is consolidating well above this mark. With trading volumes nearly double the 30-day average and a rising RSI (14), we expect targets of 5,100 and 5,200. A stop-loss should be set at 4,490 to manage risk effectively.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
