Traders are waiting for either side breakout

Mumbai: The benchmark indices witnessed lacklustre activity. The Sensex was down by 102 points. Among sectors, the IT Index rallied 1.95 per cent, whereas the Auto Index shed nearly 0.75 per cent.

Technically, after a lower open, the market registered non-directional activity throughout the day. On the downside, it took support near 84,600, while profit booking was seen near 85,100.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We are of the view that the intraday market texture is non-directional; perhaps traders are waiting for either side breakout. On the higher side, 85,100 would act as an immediate breakout zone for the bulls.

“A successful breakout of 85,100 could push the market towards 85,300-85,500. On the flip side, below 84,600, selling pressure is likely to accelerate. If it falls below this level, the market could slip to 84,300-84,200.”

STOCK PICKS

Tata Elxsi | TRADE – BUY | CMP: Rs5,853 | SL: Rs5,650 | TARGETs: Rs6,050-Rs6,300

Tata Elxsi has witnessed a strong breakout with heavy volume participation, indicating fresh institutional buying. The stock is trading firmly above its key resistance zone, which now acts as immediate support. Momentum indicators are strongly bullish, suggesting continuation of the uptrend. A sustained move above Rs5,900 can trigger the next leg of the rally toward Rs6,050 and Rs6,300. Maintain SL at Rs5,650.

KPIT Technologies | TRADE – BUY | CMP: Rs1,208.50 | SL: Rs1,165 | TARGETs: Rs1,260-Rs1,320

KPIT Tech continues to remain in a well-defined uptrend with higher-high and higher-low formations. The stock has broken out of a consolidation range and is witnessing follow-through buying. RSI remains in the bullish zone, supporting further upside. A move above Rs1,220 can accelerate momentum toward Rs1,260 and Rs1,320. Keep SL at Rs1,165.

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