Level-based trading is the ideal strategy
Market support seen at 80,000, with downside to 79,700–79,500. Resistance at 80,500–80,700; breakout above 80,700 may target 81,200
Level-based trading is the ideal strategy
Mumbai: The benchmark indices experienced profit booking at higher levels. The Sensex was down by 207 points. Among sectors, FMCG and Defence indices rallied over 1 per cent, whereas intraday profit booking was seen in selective banking and financial stocks.
Technically, after an intraday rally, the market faced resistance near 80,700. Due to profit booking at higher levels, it corrected sharply, shedding over 700 points from the day’s highs. “We believe that the intraday market remains volatile and non-directional; hence, level-based trading would be the ideal strategy for day traders,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities. On the lower side, 80,000 would act as a crucial support zone. Below this, the market could retest levels of 79,700-79,500.
On the higher side, the 20-day SMA (Simple Moving Average) or 80,500 and 80,700 could serve as key resistance levels for the bulls. A successful breakout above 80,700 could push the market up to 81,200.
STOCK PICKS
V-Mart | TRADE–BUY | CMP: Rs744 | SL: Rs720 | TARGETs: Rs780-Rs800
V-Mart is consolidating near Rs740 levels after a steady recovery. The stock is holding above support at Rs720, with improving volumes indicating accumulation. Sustaining above current levels could open the way toward Rs780–Rs800 in the short term.
Dr Lal PathLabs | TRADE–BUY | CMP: Rs3,228 | SL: Rs3,150 | TARGETs: Rs3,350-Rs3,420
Dr. Lal PathLabs is trading with a positive bias, holding firm above key support at Rs3,150. The stock is showing bullish momentum on RSI, with resistance near Rs3,300 likely to be tested soon. A breakout can take it toward Rs3,350–Rs3,420.
(Source: Riyank Arora Technical Analyst at Mehta Equities)
