Daily Charts Indicate Indecisiveness

Mumbai: On Tuesday, the benchmark indices witnessed a narrow-range activity as BSE Sensex was down by 33 points. Among sectors, Media and Digital indices outperformed rallied over one per cent whereas Energy index registered intraday selling pressure at higher levels. Technically, after a sharp selloff on Monday, market witnessed range-bound activity. A small candle formation on daily charts indicates indecisiveness between the bulls and the bears.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, 84,650 would be the trend decider level for the bulls. As the long as market is trading below the same, the weak sentiment is likely to continue. On the down-side, the market could retest the level of 84,000-83,700. On the flip side, above 84,650 the market could bounce back up to 84,900-85,000. The current market texture is non-directional hence level based trading would be the ideal strategy for the day traders.”

Vaibhav Vidwani, research analyst, Bonanza Portfolio, said: “Today, the Indian stock market exhibited a mixed performance, with both the Sensex and Nifty indices closing marginally lower after a volatile trading session. BSE Sensex / Nifty ended at 84,335/25809 on sideways note. Despite early gains driven by IT stocks, selling pressure emerged from sectors like Oil & Gas, Energy and Realty, leading to a decline in overall market sentiment. In broader markets, the BSE Midcap and Small cap indices also fell, indicating widespread caution among investors amid mixed global cues and recent profit booking activities.”

STOCK PICKS

Deepak Nitrite-Buy | CMP: 2,958 | SL: 2,900 | TARGET: 3,100 & 3,200

Deepak Nitrite has recently witnessed a trendline breakout above the 2,910 mark, indicating strong bullish momentum. The stock has been making higher lows, and the breakout suggests further upside potential. With strong support at 2,900, a strict stop loss should be maintained to manage risk. The next resistance levels are 3,100 and 3,200, making it a good buy at current levels.

Paytm-Buy | CMP: 730 | SL: 700 | TARGET: 800 & 820

Paytm has shown a breakout above the 720 level, signalling a potential upward move. The stock has strong support at 700, and the breakout aligns with increasing volumes, indicating a positive trend. With targets set at 800 and 820, Paytm looks like a strong buy with a good risk-reward ratio.

(Source: Riyank Arora, technical analyst at Mehta Equities)

CMP (Current Market Price); SL (Stop Loss)/All prices in Rs