Charts indicating non-directional trading
The 58,800-58,600 would be the immediate support, while 59,400-59,600 would act as a crucial resistance zone
Sensex takes a pause, Nifty at fresh peak
Mumbai: On the day of weekly expiry day, the benchmark indices witnessed profit booking at higher levels. BSE Sensex was down by 503 points. Among sectors, IT index was the top looser, down over one per cent whereas despite weak market conditions. Reality index outperformed, rallied over two per cent. Technically, post-reversal the market witnessed non-directional activity near 200-day SMA.
The texture of the chart indicating continuation of non-directional activity in the near future. “For traders, buying on dips and sell on rallies would be the ideal strategy. The 58,800-58,600 would be the immediate support zone for the bulls, while 59,400-59,600 would act as a crucial resistance zone for the traders,” says Shrikant Chouhan, head (equity research-retail), Kotak Securities.
Stock Picks
- Voltas: It’s witnessing a V-shaped recovery from 830 level, which could now act as a stop loss for the move towards Rs1,000 or higher levels. Buy ondips towards Rs900 could be ideal for capturing upside momentum. Consolidation near currently levels of Rs915 will be building up strength to move in north direction.
- Venkeys: On daily basis since past two sessions, the stock is showing positivity in trend. Near base level of Rs1,600 price have found support, which could be used as stop loss for the upward traction towards Rs1,700 or higher level. Prices have reversed exactly from the oversold region seen on RSI, which means downside is limited and buyingcan be seen from here.
(Source- Ravi Gangan, Technical Trader, Mehta Equities)
