Traders Awaiting Either Side Breakout

Mumbai: On Wednesday, the benchmark indices witnessed a recovery from the lower levels. BSE Sensex was up by 106 points. Among sectors, the Capital Market Index was the top gainer, rallying over 3 per cent, whereas the Defense Index shed over 1 per cent. Technically, after a weak open, the market bounced back sharply from the day’s lowest point, over 500 points.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that the current market texture is non-directional; perhaps traders are waiting for either side breakout.” On the higher side, 81,000 would be the immediate breakout level for traders. Above this level, the market could move up to 81,300-81,500. On the other side, a dismissal of 80,500 could accelerate the selling pressure. Below this level, the market could retest the level of 80,200. Further downside may also continue, which could drag the market down to 80,000-79,800.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Even as the country is in the middle of a military action against terrorists network across the border, markets witnessed gyration during intra-day trades but eventually managed to shrug off the uncertainty to end slightly higher.”

While the mood will be of caution due to Indo-Pak war tension, markets could witness choppy sessions with stock-specific activity over next few days. On May 7, 2025, the Indian stock market closed with a modest upside, with the Nifty-50 ending at 24,414.4, up 34.8 points (0.14%) from the previous close, and the Sensex hovering around 80,746. Despite a volatile session marked by geopolitical tensions due to India’s precision strikes in ‘Operation Sindoor’ against terror camps in Pakistan, markets showed resilience.

Vaibhav Vidwani, research analyst, Bonanza, said: “Tata Motors (up 4.95% following demerger approval), ICICI Bank, and Power Grid supported the broader indices. The market’s upside was primarily driven by investor confidence in the non escalatory nature of the military action and easing tariff tensions globally, which helped offset initial fears.”

STOCK PICKS

IIFL | TRADE-BUY | CMP: Rs367 | SL: Rs355 | TARGETs: Rs385–Rs395

IIFL is showing strong price action after holding above its support near Rs355. The stock has been forming higher lows, indicating steady buying interest at lower levels. If it sustains above Rs370, it could pick up momentum and head toward Rs385 and Rs395. The overall trend remains positive, and the current price setup offers a good risk-reward ratio. Traders can look to buy at current levels or on small dips, with a stop loss placed at Rs355.

KEC International | TRADE-BUY | CMP: Rs725 | SL: Rs705 | TARGETs: Rs745–Rs760

KEC International has been in a strong uptrend and is currently trading near its recent highs. The stock has shown consistent strength and is forming a bullish pattern on the chart. A move above Rs730 can lead to further gains toward Rs745 and Rs760. Volume activity also suggests accumulation at lower levels. Traders may consider buying now or on slight pullbacks, keeping a stop loss at Rs705 to manage downside risk.

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