Market texture still non-directional
If Sensex slips below 73,700 level, then possible one quick intraday correction till 73,400-73,200 range
Mumbai: On Wednesday, the benchmark indices witnessed a range-bound activity as BSE Sensex was up by 114 points. Among sectors, Metal index outperformed, rallied over 2.5 percent whereas IT index shed nearly one percent.
Technically, from last two days, the Sensex hovering within the range of 73,700 to 74,100.
However, the short-term texture of the market is still in to the positive side.
“We are of the view that, if the Sensex slip below 73,700 then we could see one quick intraday correction till 73,400-73,200.
On the flip side, the 74,100 would be the immediate breakout level for the bulls,” says Shrikant Chouhan, head (equity research), Kotak Securities.
Above which, the market could move up to 74,500-74,700 level. The current market texture is non-directional. Hence, level-based trading would be the ideal strategy for the day traders.
CMP (Current Market Price); SL (Stop Loss)/ All prices in Rs
Stock Picks
Imagicaa - Buy
CMP: 82.90 | SL: 77 |
Target: 92.50
The stock has touched its anchor VWAP support mark on its daily timeframe charts. With the RSI (14) being near 52, it is expected that the stock should see some momentum pick up in its upcoming trading sessions.
Low volumes are a sign of volatility contraction, and the stock looks like a promising buy at CMP with a set stop-loss at the 77 mark for potential targets of 92.50 and above.
Hindalco - Buy
CMP: 636 | SL: 625 |
Target: 650
The stock has given a strong breakout above its resistance mark of 625.40 on its daily charts. With the RSI (14) on daily charts being near 76, it is expected that the stock should head higher towards 650 and above, with a set stop-loss at 625. With the volumes in Wednesday’s session being nearly equivalent to its Avg (30) days volume, the stock is looking poised for a good upside move from current levels.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
