Level Based Trading Ideal For Day Traders
Key support levels are at 81,100 and 81,300, above which it could move up to 81,600-81,800. Below 81,100, it could correct up to 80600-80400
Level Based Trading Ideal For Day Traders
Mumbai: On Monday, the benchmark indices witnessed an intraday recovery from lower levels. The Nifty ends 34 points lower, while the Sensex was down by 77 points. Among sectors, the Reality, Capital Market, and PSU Bank indices outperformed, gaining over 2 percent, whereas selective Metal and IT stocks registered intraday profit booking at higher levels. Technically, after an early morning intraday sell-off, the market took support near 24,500/80600 and bounced back sharply.
We are of the view that, the current market texture is non directional hence level based trading would be the ideal strategy for day traders, 24,650/81,100 and the 20-day SMA or 24,700/81,300 would act as key support levels. Above these levels, the market could move up to 24,820–24,900/81,600-81,800. On the flip side, below 24,650/81,100, selling pressure is likely to accelerate. If the market falls below this level, it could correct up to 80,600-80,400.
STOCK PICKS
Anant Raj Ltd | TRADE-BUY: Rs577 | SL: Rs550 | TARGET: Rs630
Anant Raj has shown a strong upward breakout above the key resistance level of Rs570, supported by a significant increase in volume. The stock is in a well-defined uptrend and trading firmly above all major moving averages. This suggests sustained buying interest and institutional participation. The Relative Strength Index (RSI) is near 69, indicating robust momentum while still leaving room for upside. The chart structure reflects higher highs and higher lows, confirming bullish strength. As long as the stock sustains above Rs550, the trend remains intact, and it may move towards Rs630 in the near term. Buying on dips is advisable.
Network18 Media & Investments Ltd | TRADE-BUY: Rs56.82 | SL: Rs53 | TARGET: Rs64
Network18 is gaining strength after a period of sideways consolidation, with a breakout seen above Rs56 supported by increased volumes. The stock is showing early signs of trend reversal and trading close to its short-term moving averages. The RSI is currently around 67, reflecting improving momentum. If the stock sustains above Rs56, it could attract further buying interest and head towards the Rs64 level in the short term. MACD is showing a mild positive crossover, indicating a potential shift to bullish territory. The risk-reward setup remains favorable, making it a good candidate for short-term accumulation on dips near support.
(Source: Riyank Arora, technical analyst at Mehta Equities)
