Market Remains In Indecisive Mode

Mumbai: On Thursday, the benchmark indices witnessed a narrow-range activity, BSE Sensex was down by 315 points. Among sectors, the Pharma index outperformed, rallying over one per cent, whereas profit booking was observed in Realty and FMCG stocks, with both indices shedding over one per cent.

Technically, after a muted opening, the market experienced narrow-range activity. On the daily charts, it has formed an inside body candle formation, indicating indecisiveness between the bulls and bears. Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that the short-term market texture is bullish, but a fresh uptrend rally is only possible after the dismissal of the 80,100 resistance zone.”

Above this level, the market could move up to 80,400-80,500. On the other hand, if the market falls below 79,600, we could see a quick intraday correction down to 79,300. Further downside may also continue, which could drag the market down to 79,000. The current market texture is non-directional. Hence, level-based trading would be the ideal strategy for day traders.

STOCK PICKS

Divi’s Laboratories | TRADE-BUY | CMP: Rs6,215 | SL: Rs6,100 | TARGETs: Rs6,350–Rs6,450

Divi’s Labs has been trading in a tight range recently and is now starting to show signs of an upward move. The stock is holding firm above Rs6,100, which has acted as a strong support zone in the past. The price is slowly moving higher, and the overall structure looks positive. If it crosses Rs6,220–Rs6,250 with strong volumes, a rally toward Rs6,350 and even Rs6,450 can be expected in the short term. Traders can consider buying now or on small dips, with a stop loss at Rs6,100 to manage risk.

Tata Elxsi | TRADE-BUY | CMP: Rs5,918 | SL: Rs5,800 | TARGETs: Rs6,050–Rs6,150

Tata Elxsi has shown good recovery from recent lows near Rs5,800, which continues to act as a solid support level. The stock is gradually moving up and forming a bullish pattern, indicating that buyers are coming back. If it sustains above Rs5,950–Rs5,960, there could be a strong upmove toward Rs6,050 and Rs6,150. Volume activity is also slowly picking up, which supports the positive outlook. Traders can look to enter now or on slight declines, with a stop loss at Rs5,800 to protect against any downside.

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