Market remains volatile

Mumbai, May 2: The benchmark indices experienced a volatile trading session on Wednesday. Sensex was down by 189 points. Among the sectors, the auto index was the biggest gainer at 1.80 per cent, while the IT and media indices fell by more than 1 per cent.

Technically, the market maintained a positive momentum after a strong start, but it declined sharply in the second half due to higher-level profit booking. On the daily chart, the index has formed a bearish candle which indicates a strong possibility of further weakness from the current levels.

“For traders, the key resistance zones are 74800-75100, while the market may retest levels of 74000-73800 below that, On the other hand, the sentiment may change only above 75,100 levels, which could send the market to 75,600 levels,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.

However, any bounce back towards 50000 will be an opportunity to reduce trading long positions, while buying is advisable between 49100 and 49000 levels with a stop loss at 49000 on a daily closing basis.

Today's trading is expected to be volatile as the Federal Reserve maintains interest rates at a 23-year high due to inflation concerns.

Positive factors include record-high GST revenue, FIIs and DIIs being net buyers, and WTI oil prices falling below $80 a barrel. Investors anticipate a pre-election rally and Federal Reserve Chair Powell dismissing talks of 'stagflation'.

“Stocks like COAL INDIA, GRASIM, INDUSINDBANK, and COLPAL are bullish with an inter-week/inter-month perspective IRCTC stands out as a top buy, driven by momentum with targets set at 1068/1119 and aggressive targets at 1309,” says Prashanth Tapse, Senior VP (Research), Mehta Equities.