Range-Bound Texture May Persist

Mumbai: On Tuesday, the benchmark indices experienced a volatile trading session. After a roller coaster activity, the Sensex was down by 625 points. Among sectors, the Defense index outperformed, rallied over 1 per cent, whereas intraday profit booking was seen in selective Auto, Banking, and IT stocks. After an initial fall, the market bounced back sharply, but once again, profit booking occurred at higher levels. Currently, the market is witnessing non-directional activity; perhaps traders are waiting for an either-side breakout.

Technically, 81,100 would be the key support zone for traders, while 82,200 would act as a crucial resistance zone for the bulls.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “As long as the market trades within this range, a range-bound texture is likely to persist.” On the higher side, a successful breach of 82,200 could push the market up to 82,500-83,000. On the downside, a fall below 81,100 could retest levels of 80,600-80,500.

Prashanth Tapse, Senior VP (Research), Mehta Equities, said: “Investors booked profit ahead of the monthly expiry on Thursday in spite of a positive sentiment in European markets and strong gains in US futures. While markets may stay choppy due to global uncertainty, India still offers a lot of solace to investors because of its strong growth factors.”

Vaibhav Vidwani, Research Analyst, Bonanza, said: “The downside was primarily driven by profit booking after a recent strong rally, especially in financial and IT sectors. Rising U.S. Treasury yields and weak global cues, including subdued Asian markets and uncertainty over U.S.-EU trade talks—where President Trump extended tariff deadlines to July 9—also weighed heavily on investor sentiment.”

STOCK PICKS

Chennai Petroleum | TRAE-BUY | CMP: Rs684 | SL: Rs655 | TARGETs: Rs715–Rs740

Chennai Petroleum is showing strong price action after taking support near Rs655. The stock has been forming higher lows and is now trading with strong momentum. A sustained move above Rs685 could lead to a quick rally toward Rs715 and Rs740 in the short term. Buying interest is visible, and the overall trend remains positive. Traders can look to buy at current levels or on minor dips, with a stop loss at Rs655 to manage risk.

Yes Bank | TRADE-BUY | CMP: Rs21 | SL: Rs19.50 | TARGETs: Rs22.50–Rs24

Yes Bank has held firm support near Rs19.50 and is now attempting to move higher. The stock has been trading in a narrow range and looks ready for a breakout above Rs21.20. If it sustains this level, it could move toward Rs22.50 and then Rs24. Momentum is gradually building, and any dip toward Rs20.50–Rs20.70 could offer a good entry point. Traders should keep a stop loss at Rs19.50 to protect against downside.

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