Mkt is indecisive between bulls and bears

Mumbai, Aug 21

Today, the benchmark indices witnessed narrow-range activity. The Sensex was up by 143 points. Among sectors, Pharma and Healthcare indices gained nearly 1 per cent, whereas the Capital Market index lost the most, shed over 2 per cent.

Technically, after a gap-up open, the market experienced range-bound activity throughout the day. On daily charts, it has formed a small candle, indicating indecisiveness between the bulls and the bears.

“We are of the view that the larger market trend is upward, but for day traders, buying on intraday corrections and selling on rallies would be the ideal strategy,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

On the downside, 81,700 and 81,500 would act as key support zones, while 82,300 and 82,500 could be crucial resistance levels for the bulls.

However, below 81.500, the sentiment could change. If the index falls below this level, traders may prefer to exit long positions.

Stock Picks

Lemon Tree Hotels – Buy | CMP: ₹166 | SL: ₹160 | Target: ₹174 / ₹180

Lemon Tree Hotels is trading near its support zone and has started to witness accumulation. The stock is holding firm above its short-term moving averages with improving momentum. RSI is trending upward, signaling strength. If it sustains above ₹166, it can move towards ₹174 and ₹180. Traders may consider fresh longs with a stop-loss at ₹160.

ITC Hotels – Buy | CMP: ₹250 | SL: ₹242 | Target: ₹260 / ₹268

ITC Hotels has shown a breakout from consolidation and is sustaining above key moving averages. Volume activity indicates buying interest, while RSI remains in the bullish zone, supporting further upside. Sustaining above ₹250 could drive the stock toward ₹260 and ₹268. Traders may go long with a stop-loss at ₹242.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.