Market hovering in indecisiveness

Mumbai: On Monday, the benchmark indices witnessed lacklustre activity. The Sensex was down by 119 points. Among sectors, the Reality index outperformed, rallying over 2.60 percent, whereas intraday profit booking was seen in selective IT and Pharma stocks.

Technically, after a muted open, the entire day hovered between the 81,750 to 82,000 ranges. Non-directional intraday activity and a small bearish candle indicate indecisiveness between the bulls and the bears.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “For day traders now, 81,750 and 81,500 would act as key support zones, while 82,000 and 82,100 could serve as crucial resistance levels for the bulls.”

On the higher side, a successful breakout above 82,100 could push the market up to 82,400-82,500. Conversely, below 81,500, it could retest the 50-day SMA (Simple Moving Average) level or 81,200.

STOCK PICKS

GRSE | TRADE–BUY | CMP: Rs2,491 | SL: Rs2,420 | TARGETs: Rs2,600-Rs2,700

Garden Reach Shipbuilders (GRSE) is showing strong bullish momentum, holding near record levels with sustained buying support. The stock is trading above its short- and medium-term moving averages, confirming strength.

RSI is trending upward, indicating continued positive sentiment. A sustained move above Rs2,491 could take the stock toward Rs2,600 and Rs2,700. A stop-loss at Rs2,420 is recommended to safeguard against downside risk.

Syrma SGS | TRADE – BUY | CMP: Rs802 | SL: Rs775 | TARGETs: Rs845-Rs880

Syrma SGS is witnessing steady accumulation after consolidation, supported by improving volumes. The stock has rebounded from support and is trading comfortably above its key averages, signaling a positive bias. RSI is in the bullish zone, suggesting further upside momentum.

Sustaining above Rs802 can push the stock higher toward Rs845 and Rs880. Traders may consider fresh long positions with a stop-loss at Rs775.

(Source: Riyank Arora Technical Analyst at Mehta Equities)