Traders waiting for either side to break out
Markets are in a consolidation phase as traders await a breakout in either direction. Uncertainty prevails with key levels in focus for the next major move.
Traders waiting for either side to break out
Mumbai, Aug 05
Today, the benchmark indices experienced selling pressure at higher levels. The Sensex was down by 308 points. Among sectors, intraday buying interest was seen in selective Defence stocks, whereas the capital market index lost the most, shedding over 1 percent. Technically, after an early morning selloff, the market registered range-bound activity throughout the day.
“We believe that the market is currently exhibiting non-directional activity, with traders possibly waiting for either side to break out,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.
For day traders, the levels of 81,000 will act as important resistance zones. Above these levels, a pullback could continue up to 81,500-81,600. On the downside, 80,500-80,300 will serve as key support zones. Below these levels, the market could slip further to 80,000-79,700. Given the current market texture of non-directional movement, level-based trading would be the ideal strategy for day traders.
Stock Picks
BSE Ltd
Buy | CMP: ₹2,367 | SL: ₹2,300 | Target: ₹2,500 / ₹2,550
BSE Ltd has bounced back strongly and is trading above key short-term moving averages, indicating renewed strength. The stock has shown a breakout move backed by healthy volumes, with RSI also trending positively, reflecting strong momentum. Sustaining above ₹2,367 could push it toward ₹2,500–₹2,550 in the near term. The price action suggests bullish continuation, supported by higher highs on the chart. Traders can consider buying at current levels with a stop-loss at ₹2,300 to manage risk effectively.
Sambhv Steel & Power Ltd
Buy | CMP: ₹123 | SL: ₹118 | Target: ₹135 / ₹140-Sambhv Steel has reclaimed key levels and is showing signs of accumulation near ₹120. The stock is trading above its short-term moving averages, and improving volumes confirm buying interest. RSI is stable and points toward further upside potential. If it sustains above ₹123, it may head toward ₹135–₹140. The overall trend is constructive with strong support at lower levels. Traders can consider fresh buying opportunities, placing a strict stop-loss at ₹118 for risk management.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
EoM.
