Range-Bound Texture Is Likely To Continue

Mumbai: In the last session of the week, the benchmark indices witnessed lacklustre activity. The Sensex was down by 270 points. Among sectors, the PSU Bank index gained the most, ral-lying over 4 percent, whereas the FMCG index lost the most, shed 2.29 per cent.

Technically, the week opened on a positive note, but once again, the market witnessed profit booking at higher levels. On weekly charts, it has formed a small bearish candle, and on intra-day charts, it is holding a weak formation, which is largely negative.

Amol Athawale of Kotak Securities, said: “We believe that the 20-day SMA (Simple Moving Average) and the level of 80,900 will act as key support zones for short-term traders, while 82,200 will serve as a key resistance area for the bulls.”

As long as the market remains between the 80,900 and 82,200 ranges, a sideways, range-bound texture is likely to continue. On the upside, a successful breakout above 82,200 could push the market towards 82,900. Further upside may also continue, potentially lifting the index up to 83,700. On the other hand, a breach of 80,900 could change the sentiment. Below this level, the market is likely to retest the levels of 80,300–79,800.

Vaibhav Vidwani, Research Analyst, Bonanza, said: “The market decline was primarily driven by subdued investor sentiment amid cautious global cues, including concerns over a cooling US economy and persistent trade uncertainties.” Additionally, a 1% drop in IT stocks, which have significant US revenue exposure, weighed heavily on the indices.

STOCK PICKS

State Bank of India (SBIN) | TRADE-BUY: Rs812 | SL: Rs780 | TARGET: Rs860

SBIN is showing strong momentum, rebounding sharply from its recent support zone near Rs780. The stock is forming a bullish structure with higher lows and is trading well above key moving averages, indicating sustained strength. A breakout above Rs810 confirms buying inter-est, supported by rising volumes. The Relative Strength Index (RSI) stands at 68, showing posi-tive momentum without being overbought. With the broader banking index in an uptrend, SBIN is likely to participate in the rally. As long as it stays above Rs780, the near-term outlook re-mains positive, with potential to move towards Rs860. Buying on dips is recommended.

IndusInd Bank | TRADE-BUY: Rs817 | SL: Rs790 | TARGET: Rs870

IndusInd Bank has displayed a strong breakout above Rs810, backed by increasing volumes and bullish sentiment across the banking space. The stock is trading in a well-defined uptrend, consistently making higher highs. Technical indicators support the move, with the RSI at 70 suggesting strong but sustainable momentum. Additionally, the MACD has formed a positive crossover, confirming the uptrend. The stock is holding above its short- and medium-term mov-ing averages, reflecting continued institutional buying. If it sustains above Rs790, the upmove may extend towards Rs870. Short-term traders and positional investors can consider entering the stock on minor dips for gains.

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