Wait for range-bound activity in near future

Mumbai: In the last session of a truncated week, the Sensex was down by 722 points. Among sectors, the Media index lost the most, shedding over 3 per cent, whereas Capital Market and PSU Bank indices outperformed rallied over 2 per cent.

During the week, the market breached the crucial support zone of 83,900, and post-breakdown, selling pressure intensified. However, last Friday, the market registered some recovery from the lower levels. Technically, on weekly charts, it has formed a bearish candle and is currently trading comfortably below the 20-day SMA (Simple Moving Average) support zone, which is largely negative.

Amol Athawale, VP – Technical Research, said: “We believe that the short-term market outlook remains weak, but due to temporary oversold conditions, we could see range-bound activity in the near future.”

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: For traders, the support zone of 82,600-82,400 would be promising, while 83,600-83,900 could act as key resistance levels for the bulls. A successful breakout above 83,900 could push the market to 84,200-84,500. On the other hand, if the market slips below 82,400, it could retest the levels of 81,700-81,500.”

STOCK PICKS

Orkla India | TRADE – BUY | CMP: Rs707 | SL: Rs670 | TARGETs: Rs825-850

Orkla India, a recently listed IPO, is showing promising strength with early signs of accumulation. Despite limited trading history, the stock displays steady price action and strong investor interest. A move above Rs710 could extend the rally toward Rs825 and Rs850. Traders can consider buying on dips while maintaining a stop-loss at Rs670.

Ixigo | TRADE – ACCUMULATE | CMP: Rs279 | SL: Rs265 | TARGETs: Rs300-315

Ixigo is consolidating near its support zone around Rs275, forming a base for the next leg higher. The trend remains constructive as long as it holds above Rs265. A breakout above Rs285 could lead to a rally toward Rs300 and Rs315. Accumulate gradually with a medium-term perspective.

(Source: Riyank Arora Technical Analyst at Mehta Equities)