Further Fall Likely

Mumbai: In the last session of the week, the benchmark indices continued profit booking as BSE Sensex was down by 1,870 points. Among sectors, all the major sectoral indices were traded in to the red, but Media and Metal indices corrected sharply shed over seven per cent.

During the week, market consistently faced selling pressure at higher levels and after a long time it slipped below 100day SMA (Simple Moving Average), which is largely negative. In addition, it also formed long bearish candle on weekly charts, which supports further weakness from the current levels.

Amol Athawale, V-P (technical research), Kotak Securities, said: “We are of the view that, the current market texture is weak, but oversold hence strong possibility of pullback rally from the current levels is not ruled out.” Markets continued its downward trajectory as broader selloff pulled down key benchmarks with Sensex ending below the crucial 80k mark.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “The dismal Q2 earnings so far have aggravated the investors’ woes, while persistent FII selling continued to create havoc in the market. Despite the Chinese stimulus announcement, falling crude oil prices is an indication that major economies continue to feel the slowdown pinch.”

STOCK PICKS

ITC Ltd | TRADE: BUY | CMP: Rs482 | SL: Rs475 | TARGET: Rs500

ITC is currently trading near a key level of Rs482, presenting a good buying opportunity with limited downside. The stock has demonstrated resilience around this price point, with technical indicators signaling a potential move toward Rs500. With a stop loss at Rs475, the risk is well-managed, making this trade favorable for short-term gains. A breakout above Rs500 could pave the way for further strength in the stock.

Oracle Financial Services (OFSS) | TRADE: BUY | CMP: Rs10,888 | SL: Rs10,400 | TARGET: Rs11,800

OFSS stands strong at Rs10,888, supported by favorable technical trends and momentum. With support at Rs10,400, the stock offers a solid risk-reward ratio for a buy position. Positive price action suggests that buyers are stepping in at current levels, setting a course toward Rs11,800. A breach of this target could lead to additional gains, while the stop loss is at Rs10,400.

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