Be a stock-specific trader in directionless mkt
Market likely to make trending move above 58,300 level or breaking the 56,200 level; A close below the 56,200 level will be negative for the market
Mumbai: Benchmark indices recorded more volatile price action on Monday. Even though BSE Sensex opened below the psychological level of 56,500, it closed at 56,975, which is positive for the short term trend of the market.
Fresh buying was seen in HDFC twins, while profit-booking was seen in auto and technology stocks. Technically, the market holding above the level of 56,200, but at the same time, it is failing to show sustained momentum. In short, the market is consolidating within a broad trading range of 58,300 and 56,200.
"We may not see any trending move in the market unless the market is crossing the 58,300 level or breaking the 56,200 level. It is advisable to be a stock-specific trader in the market rather than focusing on the index," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. A close below the 56,200 level will be negative for the market.
The volatility index is well above the 20 level, which is an indication that the market is about to break the trading range in the near future, he added.