Mkt texture still on weak side

Mumbai: In the last week, the benchmark indices witnessed a profit booking at higher levels as BSE Sensex was down by 1,260 points. Among sectors, Metal index lost the most nearly three per cent whereas despite weak market sentiment healthcare and pharma stocks continued positive momentum.

During the week, market slipped below 20-day SMA (Simple Moving Average), but in the second half of the week it trimmed some losses and eventually closed at 79,722. Technically, the larger texture of the market is still into the weak side.

However, as long as it is trading above 79,200 the pullback formation is likely to continue up to 20-day SMA or 80,400. Further upside may also continue which could lift the market till 80,800. Amol Athawale, V-P (technical research), Kotak Securities, said: “On the other side, dismissal of 79,200 could accelerate the selling pressure.”

Below which it could slip till 78700 or 50-day SMA and 78,200. For Bank Nifty now, the 50,000 would be the immediate reference point for the bulls. Above 50,000, it could bounce back up to 50,800 and 50-day SMA or 51,200. On the flip side, below 50,000 uptrend would be vulnerable. Below the same, we could expect 49,700-49,500.

“Strong global market cues provided a major impetus to local shares as Sensex surged more than 1,000 points in intra-day trades on all-round buying support. Despite volatility in foreign fund flows this year, capital infusion by domestic institutions have been robust over the past year or so, which is giving local markets a major succour in times of volatile phase,” says Prashanth Tapse, senior V-P (research), Mehta Equities

“Ola Electric Mobility shares made a robust stock exchange debut on Friday, soaring 20 per cent over the IPO allotment price to hit the upper circuit during the day, after a strong oversubscription to the public issue,” said Vaibhav Vidwani, research analyst at Bonanza Portfolio.

STOCK PICKS

Imagicaa | Buy | CMP: Rs94.84 | SL: Rs87.80 | Target: Rs105

Imagicaa has successfully surpassed its key breakout level at Rs90.70, with strong support around Rs87.80. The RSI (14) is at 74, indicating robust bullish momentum. Additionally, trading volumes are seven times the 30-day average, showing increased investor activity. Given these factors, the stock is expected to reach the Rs105 target. Setting a stop-loss at Rs87.80 is advised for effective risk management.

Affle India | Buy | CMP: Rs1,595 | SL: Rs1,490 | Target: Rs1,750

Affle India has breached its critical breakout level at Rs1,511, with solid support near Rs1,490. The RSI (14) is at 70, reflecting strong upward momentum. Moreover, trading volumes are five times the 30-day average, indicating heightened investor interest. Based on these indicators, the stock is projected to move towards the Rs1,750 target. A stop-loss at Rs1,490 is recommended for effective risk management.

(Source: Riyank Arora, technical

analyst at Mehta Equities)

CMP (Current Market Price);

SL (Stop Loss)/All prices in Rs