Charts Signal Further Fall

Mumbai: In the last session of the truncated week, the benchmark indices witnessed selling pressure at higher levels, with BSE Sensex was down by 930.67 points. Among sectors, the IT index lost the most, shedding over nine per cent. However, despite the weak market sentiment, some buying interest was seen in PSU bank stocks, resulting in the PSU Bank index gaining over one per cent.

During the week, the market breached the crucial support zone of 77,400, and after this breakdown, selling pressure intensified. Technically, on the weekly charts, it has formed a long bearish candle, and on the intraday charts, it is holding a lower top formation, which supports further weakness from the current levels.

Amol Athawale of Kotak Securities, said: “We believe that after a sharp correction, the market is currently trading near the 20-day and 50-day Simple Moving Averages (SMAs).”

The short-term outlook suggests that if the market reclaims the 75,800 mark, we could see a pullback rally up to 76,500-76,800. On the flip side, fresh selling is possible only after a break below 75,200. If that happens, it could slip to 74,900. Further downside may continue, potentially dragging the index down to 74,400.

Vaibhav Vidwani, research analyst, Bonanza, said: “The Indian stock market closed on a dismal note today, with the Sensex plummeting over 1.22 per cent due to global market turmoil triggered by US President Donald Trump’s sweeping tariff announcements. The Sensex ended at around 75,364, down by nearly 930 points, a decline of about 345 points from the previous close.”

STOCK PICKS

Apollo Hospitals| TRADE-BUY | CMP: Rs6,632 | SL: Rs6,500 | Target: Rs6,900

Apollo Hospitals is doing well even when the overall market is not very strong. It is showing good strength and momentum. The hospital sector as a whole is performing well, and this stock is trading above important moving averages, which is a positive sign. A few days ago, the stock moved above the Rs6,700 level, but is now taking a small break, which is normal. This pause gives a good chance to buy. We suggest buying now with a stop loss at Rs6,500 and look for a target of Rs6,900 or more.

Power Grid| TRADE-BUY | CMP: Rs297 | SL: Rs290 | Target: Rs310

Power Grid is also looking strong and is trading above its key moving averages with good trading volume. The stock has made a strong base around the Rs290–Rs295 range and is now starting to move up. The trend is positive, and we believe it can go up to Rs310 or even higher. Buying at the current price of Rs297 with a stop loss at Rs290 looks like a good idea for a possible gain.

(Source: Riyank Arora, technical analyst at Mehta Equities)