Go for level-based trading

The benchmark indices experienced a volatile trading session. After a roller-coaster activity, the Sensex was down by 151 points. Among sectors, Metal and PSU Bank indices outperformed, rallying over 1 per cent, whereas the Reality index lost the most, shedding over 1 per cent.

Technically, after an early morning intraday rally, the market faced resistance near 84,800 and corrected sharply. From the day’s highest point, the market shed over 700 points. However, in the last hour of trading, it trimmed some losses.

“We believe that the intraday market texture is volatile and non-directional; hence, level-based trading would be an ideal strategy for day traders,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities. On the higher side, 84,800 and 85,000 would act as key resistance zones, while 84,200 could be an important support area for the bulls. A successful breakout above 85,000 could push the market towards 85,300-85,500, while below 84,200, the market is likely to retest the levels of 84,000-83,700.

STOCK PICKS

IDBI Bank | TRADE – BUY | CMP: Rs102.18 | SL: Rs99 | TARGETs: Rs106-Rs109

IDBI Bank is witnessing steady accumulation and forming a strong base near Rs100 levels. The stock has moved above its key short-term averages, signaling trend continuation. Momentum indicators like RSI are trending upward, reflecting renewed buying interest. Sustaining above Rs102 could drive the next leg of rally toward Rs106 and Rs109, with support placed at Rs99.

Suzlon Energy | TRADE – BUY | CMP: Rs56.22 | SL: Rs54 | TARGETs: Rs59-Rs61

Suzlon remains in a sustained uptrend with a series of higher bottoms supported by rising volumes. The stock’s ability to hold above Rs55 reflects strength in the renewable energy pack. RSI remains in the bullish zone, confirming positive momentum. A breakout above Rs57 can trigger further upside toward Rs59 and Rs61. Traders can hold long positions with a stop-loss at Rs54.

(Source_Riyank Arora Technical Analyst at Mehta Equities)