Current market texture still non-directional
Above 75,150 which, the market could rally till 75,500-75,800; On the flip side, below 73,550 level, it could trigger a short-term correction till 73,000-72,800
Mumbai: On Wednesday, the benchmark indices witnessed volatile trading session, after roller-coaster momentum, BSE Sensex down by 27 points. Among sectors, Reality index lost the most shed 2.7 per cent whereas PSU Bank index outperformed, rallied 2 per cent.
Technically, after a gap-down open, the market took the support near 73,550 and bounced back sharply. However, it failed to close above 75,150, which is largely negative. “We are of the view that, the current market texture is still non-directional,” says Shrikant Chouhan, head (equity research), Kotak Securities. For the bulls now, a fresh uptrend rally possible only after dismissal of 75,150. Above which, the market could rally till 75,500-75,800. On the flip side, Wednesday’s low or 73,550 would act as sacrosanct support level for the traders. Below the same, it could trigger a short-term correction till 73,000-72,800.
Prashanth Tapse, Senior VP (Research), Mehta Equities says, “weak Asian and US market cues coupled with caution ahead of the RBI’s monetary policy announcement on Friday saw domestic equities end flattish with a negative bias.”
Surging crude oil prices and uptick in US bond yields are making investors nervous with FIIs offloading local shares further dampening the sentiment.
Stock Picks
DLF
CMP: 904.55 | Stoploss: 880 | Target: 950
With realty stocks witnessing some profit booking at higher levels, DLF has retraced to its breakout support mark of 900 on its daily charts. The overall trend continues to remain positive as the stock is moving in a firm uptrend with the sector performing well alongside. At the current market price of 904, the stock looks like a good buy with a SL of 880 for potential targets of 950 and above
Hindustan Copper
CMP: 311.45 | Stoploss: 300 | Target: 335
The stock has given a good breakout above its recent resistance mark of 306.50 on both its daily and weekly charts. With a good volume pickup on the counter and two days of consolidation after the breakout, the stock looks like an interesting candidate at current levels with a strict stop-loss of 300, for potential upside targets of 335 and above
(Source_Riyank Arora Technical Analyst at Mehta Equities)
