Intraday Texture In Non-Directional Mode

Mumbai: On Wednesday, the benchmark indices experienced a volatile trading session. After a roller-coaster activity, BSE Sensex was up by 410 points. Among sectors, almost all the major sectoral indices traded in positive territory, but the Defence index gained the most, rallying over 3.5 per cent.

Technically, after an early morning intraday rally, the market faced resistance near 82,000 and corrected sharply. However, it eventually managed to close above 81,200, which is largely positive.

Prashanth Tapse, Senior V-P (research), Mehta Equities, said: “We believe that the intraday market texture is non-directional, and as long as it is trading between 81,200 and 82,200, the range-bound texture is likely to continue.”

A breakout above 82,200 could push the market up to 82,500–82,700.On the flip side, if the market drops below 81,200, sentiment could turn negative. Falling below this level, the correction wave is likely to accelerate. In such a scenario, the market could retest the levels of 80,700–80,500.

“Although markets reversed its three-day losing streak, benchmark indices pared most of their early gains to end off highs, as investors remain cautiously optimistic awaiting the tariff solution between the US and other major economies, including India. Investors are also wary of the indications of a war between Israel and Iran, and steady rise in coronavirus cases in few of the southeast Asian countries,” added Tapse.

STOCK PICKS

Reliance Industries Ltd | TRADE-Buy: Rs2,429 | SL: Rs2,360 | Target: Rs2,550

Reliance Industries has recently seen a strong rebound from its support zone near Rs2,360 and is now trading around Rs2,429. The stock has shown signs of renewed strength after a brief consolidation phase. A move above Rs2,450 would confirm a breakout above recent resistance, opening the door for a rally towards Rs2,550 in the near term. The RSI is around 68, indicating strong momentum, but still below overbought levels. Volume activity has also picked up, and the stock remains above its key moving averages, suggesting continued bullishness. As long as Reliance sustains above Rs2,360, the technical structure remains positive. Buy on dips is recommended.

HDFC Bank Ltd | TRADE-BUY: Rs1,928 | SL: Rs1,880 | TARGET: Rs2,050

HDFC Bank is showing steady recovery from lower levels and is currently trading near Rs1,928. The stock is approaching a key resistance area around Rs1,950, and a breakout above this level could trigger a fresh upside move towards Rs2,050. The RSI stands at 69, reflecting strong momentum, while the stock has also witnessed a MACD bullish crossover, indicating a positive short-term trend. With banking stocks in focus and Bank Nifty showing strength, HDFC Bank is well-positioned to benefit.As long as the stock stays above Rs1,880, the bias remains positive. Traders can consider buying on dips for short-term gains.

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