A quick pullback rally more likely
For now, 74,900 will act as a trend decider, below which it could slip till 74,000-73,800. Conversely, above 74,900, it could extend bounce back up to 75,200-75,500
image for illustrative purpose
Mumbai: On Monday, the benchmark indices corrected sharply, with BSE Sensex down by 857 points. Among sectors, the IT and Digital indices experienced significant declines, shed over two per cent, while some buying interest was noted in selective FMCG and auto stocks.
Technically, after a gap-down open, the market faced selling pressure throughout the day. A bearish candle on daily charts and correction continuation formation on intraday charts indicates further weakness from current levels. We believe that while the current market texture is weak, but it is also oversold; therefore, a quick pullback rally is a strong possibility.
For traders, the level of 74,900 will act as a trend decider. As long as market is trading below the same, weak sentiment is likely to continue. Below which it could slip till 74,000-73,800. Conversely, if it rises above 74,900, it could extend bounce back up to 75,200-75,500.
Vaibhav Vidwani, research analyst, Bonanza, said: “As the Indian stock market closed on February 24, 2025, both the BSE Sensex and NSE Nifty50 experienced significant declines. The Sensex plummeted over 856 points to 74,454, marking a 1.14 per cent drop. This downturn was largely influenced by ongoing FII selling, which has been persistent due to global market dynamics favoring the US and China.”
The ‘Sell India, Buy China’ trend, driven by China’s economic recovery initiatives and relatively cheaper stock prices, continues to impact Indian equities negatively. The investors remain cautious about US tariff policies and await signs of economic growth in India. Investors look ahead, they are closely watching developments in global markets and economic indicators for potential recovery signs in the Indian stock market.
STOCK PICKS
Hindalco | TRADE-BUY | CMP: Rs641.90 | SL: Rs634 | TARGETs: Rs655 and Rs660
Hindalco has shown strength to sustain above its resistance zone near Rs640. The stock is witnessing higher highs and higher lows on the daily chart, indicating a bullish trend. With RSI (14) at 63, signalling strong momentum, a stop-loss can be placed at 634, with potential upside targets of 655 and 660.
Apollo Tyres | TRADE-SELL | CMP: Rs401.35 | SL: Rs408.50 | TARGETs: 392.50 and Rs390
Apollo Tyres has broken below its crucial support level of Rs405, confirming a bearish breakdown. The stock has also seen a decline in volumes, indicating a lack of buying interest. With RSI (14) at 32, suggesting further downside, a stop-loss can be placed at 408.5, with potential downside targets of Rs392.5 and Rs390.
(Source: Riyank Arora, technical analyst at Mehta Equities)
