Market is witnessing non-directional activity

Mumbai, Jul 04

In the last week, the benchmark indices witnessed selling pressure at higher levels. The Sensex was down by 626 points.

Among sectors, Consumer and Healthcare indices outperformed, the Consumer index gained 2 per cent, and Healthcare rallied 1.90 per cent, whereas the Reality index lost the most, shed over 3 per cent.

Technically, on intraday charts, it is holding a lower top formation, and on weekly charts, it has formed a bearish candle, which is largely negative.

However, the short-term market texture still appears to be positive.

“We believe that currently, the market is witnessing non-directional activity; perhaps traders are waiting for either side breakout,” says Amol Athawale of Kotak Securities.

For the bulls, 83,600 would act as an immediate resistance zone. If the market succeeds in trading above this level, it could move up to 84,100. A successful breakout above this could push the market towards 85,000-85,300.

On the flip side, if the market falls below 83,000, sentiment could turn negative. Below this level, the market could slip to 82,100-81,900.

Stock Picks

Motilal Oswal Financial Services Ltd

Buy at ₹920 | Stop‑Loss ₹880 | Target ₹1,000

Motilal Oswal has recently broken past the ₹900 resistance zone with notable volume, signaling renewed investor interest. The stock is trading well above its 20‑day and 50‑day moving averages, indicating a bullish trend. The Relative Strength Index (RSI) is near 67, showing strong momentum while still having room to run. Chart action demonstrates a sequence of higher highs and higher lows, reinforcing the positive outlook. If the price sustains above ₹900, the stock could extend upward toward ₹1,000. Traders may consider accumulating on dips, using ₹880 as a protective stop-loss.

Transrail Lighting Ltd

Buy at ₹742 | Stop‑Loss ₹710 | Target ₹820

Transrail Lighting has staged a breakout above the ₹730–740 resistance range, supported by healthy volume—indicating fresh buying strength. The stock is now trading above its short-term moving averages, reflecting improving technical structure. The RSI is around 66, signaling rising momentum without being overbought. With a bullish trend forming through higher lows, the stock has potential to move toward ₹820 in the near term. As long as it holds above ₹710, the outlook stays favorable. Traders may consider entering on small dips, with the ₹710 level acting as a key risk-control threshold.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.