Further correction likely
For now, 81,000 be sacrosanct support zone, below which the market could retest level of 80,500 and 80,100; On the other side, above 81,700 level, the market could bounce back up to 82,000-82,300
Mumbai: In the last session of the week, the benchmark indices witnessed selling pressure at higher levels as BSE Sensex was down by 1182 points.
Among sectors, almost all the major sectoral indices witnessed selling pressure at higher levels, but PSU Banks, Energy, Oil and Gas indices lost the most shed over three per cent. During the week, market consistently facing selling pressure at higher level and it also slipped below crucial support level of 81,700 and post breakdown selling pressure intensified.
Technically, on weekly charts, the index has formed long bearish candle and on intraday charts, it is holding lower top formation, which supports further correction from the current levels. Amol Athawale, V-P (technical research), Kotak Securities, said: “We are of the view that, the current market texture is weak, but for the short-term traders now 20-day SMA or 81,000 would act as a sacrosanct support zone.”
Below the same, the selling pressure is likely to accelerate. Below which, the market could retest the level of 50-day SMA or 80,500 and 80,100. On the other side, above 81,700 the market could bounce back up to 82,000-82,300.
For Bank Nifty as long as it is trading below 20-day SMA or 51,000 the weak sentiment is likely to continue. Below the same, it could slip till 50,000-49,600. However, above 51,000 level, we could see a one-pullback rally till 51,300-51,450.
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Markets witnessed intense profit-booking after the recent upsurge and key benchmark indices crumbled on fears a subdued US economic data could push Fed chairman to postpone rate cut decision. Investors trimmed their bullish bets ahead of the US jobs report, as any uptick in the numbers could prompt the Fed to maintain the status quo on interest rates. Also, a slew of domestic IPOs hitting the primary market over the next few weeks could see investors booking profit in the secondary market and infuse funds in these public issues.”
Indian stock markets faced a steep decline on Friday, with the BSE Sensex dropping over 1,000 points to close around 81,183, while Nifty50 fell by 292 points, settling at approximately 24,852. This sell-off was driven by investor apprehension ahead of the US non-farm payrolls report, which has increased global market volatility. Vaibhav Vidwani, research analyst, Bonanza Portfol.Io, said: “Broad-based selling was evident across all sectors, with major stocks like Reliance Industries, SBI, and ICICI Bank experiencing significant losses. The market’s downturn reflects a combination of global uncertainties and domestic economic concerns, as investors remain cautious ahead of key economic indicators that could impact Federal Reserve interest rate decisions. The overall sentiment was bearish, with all major indices closing in the red, indicating a challenging environment for investors amid rising concerns over economic growth and policy changes.”
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The stock exhibits robust resilience and is positioned for a potential upward trajectory. Strong technical indicators and positive momentum reinforce this outlook, making it an appealing entry point at current levels.
SBI Cards| Sell:Rs800.70| SL:Rs815 | Target:Rs800
The stock is experiencing downward pressure, and a breach below Rs800 could lead to further declines toward Rs775 and Rs750. Weak technical indicators suggest increased downside risk, making this a strategic short-sell opportunity.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs