Current mkt texture non-directional
Perhaps, traders waiting for either side breakout
Mumbai: On Tuesday, the benchmark indices witnessed range bound activity. The Sensex rose by 305 points. Among sectors, intraday profit booking were seen in PSU Bank, Oil, and Gas indices stocks whereas Reality index outperformed, rallying over 1 per cent.
Technically, currently the market witnessing non-directional activity. On the lower side, it is consistently taking support near 72,600 while on the higher side facing resistance near 73,150.
Shrikant Chouhan, Head Equity Research, Kotak Securities, said: “We are of the view that, the current market texture is non-directional perhaps traders are waiting for either side breakout. For the bulls now, 73,150 would act as an intraday breakout level, above which, the index could rally till 73,500-73,700.”
On the flip side, below 72,600 the selling pressure is likely to accelerate. Below which, the market could slip till 72,300-72,100.
Prashanth Tapse, Senior VP (Research), Mehta Equities, says, “Markets rebounded from 2-session losses as selective buying in frontline stocks aided recovery from early weakness. There is no major trigger and investors are taking cues from global markets. Buying in IT, auto and realty shares boosted gains of key indices, while sharp fall in oil & gas and financial stocks kept gains under check.” As we approach F&O expiry day on Thursday, volatility will begin to kick-in as traders will rollover their positions to next expiry day. Technically, the Nifty has support at 22001-21839 while the index faces resistance at 22351 and 22501 levels.
Stock Picks
JSW INFRA:
CMP: 249.90 | SL: 230.00 | Target: 280.00 and 300.00
The stock gave a good breakout above the 247 mark and is now re-testing the breakout level. At the current market price of 249.80, the overall risk-reward ratio seems favorable on the buying side, making it a good buy with a set stop loss below the 230 mark for upside potential targets of 280 and 300.
Oberoi Realty:
CMP: 1385.05 | SL: 1350.00 | Target: 1450.00 and 1500.00
The stock has given a good breakout above its recent anchor VWAP resistance mark of 1360 and has been seen consolidating for the last three days. With the overall trend being positive and momentum strong, the upside looks open towards 1450 and 1500 with a set stop loss below the 1350 mark.
(Source: Riyank Arora Technical Analyst at Mehta Equities)
