Daily Charts Indicate Further Weakness
For now, 74,300 would be the key level, below which it could retest the levels of 74,000-73,700. Conversely, above 74,300, the market could rally to 74,500-74,700
Daily Charts Indicate Further Weakness
Mumbai: On Monday, the benchmark indices witnessed a profit booking at higher levels, with BSE Sensex down by 217 points. Among sectors, the capital market index lost the most, shedding over 3.5 per cent, whereas some buying was seen in selective FMCG stocks.
Technically, after an early morning intraday rally, the market consistently faced selling pressure at higher levels. From the day’s highest points, the Sensex trimmed over 700 points. A bearish candle on the daily charts indicates further weakness from the current levels. However, the short-term market texture is still on the positive side.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “For day traders, 74,300 would be the key level to watch. As long as the market is trading below this level, the weak sentiment is likely to continue.” On the downside, it could retest the levels of 74,000-73,700. Conversely, if it moves above 74,300, the sentiment could change, and the market could rally to 74,500-74,700.
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Markets were choppy as key benchmarks slipped into the red towards the closing stages with broader markets, particularly mid and small-cap stocks boring the brunt.”
With rupee depreciating sharply and foreign fund outflows showing no signs of cooling off, markets may continue to exhibit volatility.
STOCK PICKS
Tata Motors| TRADE-BUY | CMP: Rs648 | SL: Rs630 | TARGET: Rs675
Tata Motors is showing strong bullish momentum after reclaiming key support levels. The stock has been consolidating and now looks poised for an upward breakout. With RSI (14) indicating strength, a stop-loss can be placed at Rs910, with potential upside targets of Rs970.
Bharti Airtel| TRADE-BUY | CMP: 1630 | SL: 1590 | TARGET: 1680
Bharti Airtel is witnessing steady accumulation near its support zone and is showing signs of a potential uptrend. The stock remains strong technically, with improving momentum and a positive bias. A stop-loss can be placed at Rs1m125, with an expected target of Rs1,185.
(Source: Mehta Securities)
