Traders are waiting for either side to breakout

The benchmark indices witnessed range-bound activity. The Nifty ended 67 points lower, while the Sensex was down by 245 points. Among sectors, Metal and PSU Bank indices rallied over 2 per cent, whereas the IT index lost the most, shedding over 1 per cent.

Technically, after a muted open, the market registered narrow-range activity. On the lower side, it found support near 83,200, while intraday profit booking was seen near 83,800. “We are of the view that the intraday market texture is non-directional; perhaps traders are waiting for either side to breakout”, says Shrikant Chouhan of Kotak Securities.

On the higher side, above 83,800, the market could move up to 84,000-84,200. On the flip side, below 83,200, selling pressure is likely to accelerate. If it falls below this level, it could retest the levels of 83,000-82,800.

STOCK PICKS

Chennai Petroleum | TRADE – BUY | CMP: Rs882 | SL: Rs850 | TARGETs: Rs920-Rs960

Chennai Petroleum has delivered a strong breakout with sharp price expansion and volume support. The stock is trading above its key resistance zone, which now acts as immediate support. Momentum indicators are firmly bullish, indicating continuation of the uptrend. A sustained move above Rs890 can trigger further upside toward Rs920 and Rs960. Maintain SL at Rs850.

Rishabh Instruments | TRADE – BUY | CMP: Rs356.80 | SL: Rs340 | TARGETs: Rs375-Rs395

Rishabh Instruments is holding well above its short-term support zone after a brief consolidation. The stock is forming higher lows, suggesting accumulation on dips. RSI remains positively placed, supporting further upside. A move above Rs360 can accelerate gains toward Rs375 and Rs395. Keep SL at Rs340.

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