Range-Bound Activity May Continue

Mumbai: On Tuesday, the benchmark indices witnessed a selling pressure at higher levels as BSE Sensex was down by 153 points. Among sectors, Reality index was the top gainer, rallied over 2 per cent whereas Metal index shed nearly 1.5 percent.

Technically, after positive opening market consistently facing selling pressure at higher levels. On daily charts, it has formed bearish candle, which indicates temporary weakness. “We are of the view that, the short-term market texture is non-directional and range bound activity is likely to continue in the near future,” says Shrikant Chouhan, head-equity research, Kotak Securities.

For the day traders now, 81,500 would be the immediate support zone. Above the same, we could see one quick pullback rally till 82,300-82,500. On the flip side, below 81,500 the market could retest the level of 81,000-80,700.

Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Markets continue to remain volatile as key indices ended in red after Monday’s upsurge, as fear of global economic uncertainty continues to weigh amid the ongoing West Asia conflict and the sharp drop in crude oil prices which is indicating demand slowdown.”

Another factor for the sluggishness could be investors’ focus in the primary market as investors, including domestic and foreign, must be eyeing the ongoing Hyundai public offer.

Today, the Indian stock market faced a downturn, with the Sensex falling by 152 points (0.19%) to close at 81,820, while the Nifty 50 dropped by 70 points (0.28%) to settle at 25,057. The market sentiment was weighed down by inflation concerns and mixed global cues, despite some sectors like real estate showing resilience with a 2% gain. “Heavy selling pressure was observed in the metals sector, which declined by 1.44%, reflecting broader economic anxieties. Meanwhile, the upcoming IPO of Hyundai Motor India garnered attention as it opened for subscription today, indicating ongoing investor interest in new market entries. Overall, the market closed on a cautious note as investors remained vigilant amid fluctuating global conditions and domestic economic indicators,” said Vaibhav Vidwani, research analyst, Bonanza.

STOCK PICKS

Infosys Ltd. (INFY) | TRADE-BUY: Rs1,952 |SL: Rs1,940 |TARGET: Rs2,000

Infosys has shown a strong breakout above the Rs1,925 mark, confirming bullish momentum. The stock is witnessing a sharp increase in volume, indicating strong buying interest. Technical indicators support the continuation of this upward trend, with the next resistance level positioned at Rs2,000. Holding above Rs1,925 will be critical to sustaining the positive momentum. A stop loss at Rs1,940 is recommended to limit downside risk.

Tata Consultancy Services (TCS)| TRADE-BUY: Rs4,116|SL: Rs4,050| TARGET: Rs4,250

TCS has broken out above the Rs4,100 level, signalling potential for further upside. The stock is experiencing a sharp volume surge, reflecting growing demand. Technically, the stock is poised for a rally toward Rs4,250, supported by strong price action and momentum indicators. A strict stop loss at Rs4,050 is advised to protect against downside risks. Sustained momentum above Rs4,100 is key for achieving the target.

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

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