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Market texture still non-directional

For the bulls now, 50-day SMA or 73,300 would act key level,above which the market could rally up to 73500-73600.On the flip side, below 72,800, it could retest the level of 72500-72300

Market texture still non-directional

Markets languished throughout the session and slipped into the red towards close on profit taking in banking, auto and FMCG stocks, whereas gains in realty, oil & gas and power capped the downside.

Prashanth Tapse, Senior VP (research), Mehta Equities, said: “With rate cuts from the US Fed getting delayed further and FII selling worsening the sentiment, investors are getting nervous and taking a cautious stance amid growing uncertainty.”

On Wednesday, the benchmark indices witnessed lacklustre activity as BSE Sensex was down by 118 points. Among sectors, PSU banks gained the most rallied over one per cent whereas profit booking were seen in selective FMCG and Media stocks.

Technically, after two days promising pullback rally, the market consolidate near 50-day SMA (Simple Moving Average) or 73,300. The intraday market texture is non-directional perhaps traders are waiting for either side breakout .

Shrikant Chouhan, head (equity research), Kotak Securities, said: “For the bulls now, the 50-day SMA or 73,300 would act as an immediate breakout level. Above which the market could rally up to 73500-73600.” On the flip side, below 72,800 the selling pressure is likely to accelerate. Below the same, it could retest the level of 72500-72300.


Oberoi Realty (Sell)

CMP: 1,574 | SL: 1,630 | TARGET: 1,450

The stock has formed a Spinning Top candlestick on its daily time frame charts, indicating the possibility of a bearish move. With a stop loss of 1,630, the stock looks like an attractive short sell at current levels, with potential targets of 1,450 and below. The significant spike in volumes during Wednesday’s session is a huge negative sign for the stock, and we expect good momentum to push the prices further down in the upcoming trading sessions.

Paradeep Phosphates Ltd

CMP: 71.80 | SL: 68 | TARGET: 80

The stock has given a good breakout above its trendline resistance mark of 69 and managed to close above the same. With volumes surging sharply and RSI witnessing a sharp uptick, the stock seems ready for a strong up-move towards 80 and above. A strict stop loss should, however, be kept at 68 to manage risk well. The good technical setup and strong bullish candlestick indicate overall signs of bullish momentum in the stock

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

CMP (Current Market Price); SL (Stop Loss)/All prices in Rs

Kumud Das
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