Weak momentum may continue
For now, 80,900 would act as a key support zone, below which the market could retest the levels of 80,600-80,500; However, above 81,500 the market could bounce back till 81,800-82,000
image for illustrative purpose
Mumbai: On Monday, the benchmark indices witnessed selling pressure at higher levels, the Sensex was down by 73 points.Among sectors, almost all the major sectoral indices registered selling pressure at higher levels, but Media index lost the most by shedding over 2.6 per cent.
Technically, the week opening was positive but due to selling pressure at higher-level indices corrected sharply. On daily charts, the index has formed bearish candle which indicating weak sentiment is likely to continue in the near future.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “For the day traders now, 80,900 would act as a key support zone. Below which, the selling pressure is likely to accelerate. Below which, the market could retest the level of 80,600-80,500. However, above 81,500 the market could bounce back till 81,800-82,000.”
Domestic market closed on negative note. The Sensex ended the day down by 73 points, or 0.09 per cent, at 81,151. Notable gainers on the Sensex included HDFC Bank, Asian Paints, and Tech Mahindra, which helped offset losses from major decliners like Kotak Mahindra and IndusInd Bank.
Vaibhav Vidwani, Research Analyst, Bonanza, said: “The broader market showed weakness as well, with the BSE Midcap and Smallcap indices declining by approximately 0.99 per cent and 0.95 per cent, respectively. Overall, the market’s performance was influenced by ongoing foreign selling pressures and mixed earnings reports as the quarterly results season progresses. The early downturn was primarily driven by Kotak Mahindra Bank, which reported weaker-than-expected quarterly earnings, along with a decline in IT stocks.”
Stock Picks
Tata Consumer Products | TRADE: BUY | CMP: Rs1,017 | SL: Rs986 | TARGET: Rs1,050
Tata Consumer has reached a crucial support level of Rs1,016.50, marking a strong defence by buyers. A sharp reversal is likely as the stock held this key support firmly, indicating renewed buying interest. The risk-reward ratio is favourable with the potential to hit Rs1,050 in the near term. Momentum indicators suggest a positive bias, while volume action confirms potential upside. A stop loss at Rs986 is recommended to manage downside risk.
ABB India | TRADE: BUY | CMP: Rs8,279 | SL: Rs8,050 | TARGET: Rs8,500
ABB has touched the Anchored VWAP (AVWAP) support at Rs8,260, presenting an attractive buying opportunity with a favourable risk-reward setup. The stock’s volume and momentum patterns suggest strength, making a target of Rs8,500 achievable in the short term. Technical indicators point to further upward movement, backed by consistent buying activity. A stop loss at Rs8,050 is advisable to mitigate downside risk and protect capital.
(Source: Riyank Arora,
technical analyst at Mehta Equities)
