Market Remains In Indecisive Mode

Mumbai: On Wednesday, the benchmark indices witnessed a profit booking at higher levels, with BSE Sensex was down by 380 points. Among sectors, the PSU Bank and IT indices shed over two per cent, whereas, despite weak market sentiment, the FMCG index outperformed, rallied 1.72 per cent.

Technically, after a gap-down open, the market hovered throughout the day between the 73,700 to 74,000 price range. Additionally, on daily charts, it formed a small inside body candle, which indicates indecisiveness between the bulls and the bears.

Shrikant Chouhan, Head Equity Research, Kotak Securities, said:“We believe that the current market texture is non-directional; traders may be waiting for a breakout in either direction.”

STOCK PICKS

Reliance | TRADE-BUY | CMP:Rs1,185 | SL:Rs1,160 | TARGETs: Rs1,225- Rs1,255

Reliance is trading near a strong support at Rs1,180, which has held well in recent sessions. Momentum indicators like RSI and MACD are showing early signs of reversal. Buying interest is expected to pick up if it crosses Rs1,200 decisively. Suitable for short-term traders with a risk-reward setup.

HDFC Bank | TRADE-BUY | CMP: Rs1,765 | SL: Rs1,740 | TARGETs: Rs1,820- Rs1,850

The stock has been consolidating with a strong base around Rs1,750. Any dip near this level can be used to accumulate. Technical indicators suggest a possible breakout if it sustains above Rs1,780. Volumes are gradually improving, supporting a

bullish bias.

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