Further Fall More Likely

Mumbai: On Wednesday, the benchmark indices witnessed a profit booking at higher levels, with BSE Sensex down by 729 points. Among sectors, almost all the major sectoral indices registered intraday selling pressure at higher levels, but Media Index lost the most, shed 2.40 per cent.

Technically, after a muted open, the market consistently faced selling pressure at higher levels.

From the day’s highest points, the market corrected over 950 points. Additionally, it has formed a bearish candle on the daily charts, which supports further weakness from the current levels.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, as long as the market is trading below 77,500, weak sentiment is likely to continue.” On the downside, it could retest the levels of 77,000-76,800. On the other hand, if it moves above 77,500, the sentiment could change, and the market could bounce back up to 77,800-78,000.

Contra traders can take a long position near 76,800 with a strict stop loss at 76,650.

STOCK PICKS

Federal Bank | TRADE-BUY | CMP: Rs193-196 | SL: Rs192 | TARGET: Rs205

Federal Bank is showing strong support near Rs192, with buying interest picking up at lower levels. The stock has been consolidating and is now attempting an upward breakout. A move above Rs196 could trigger further upside momentum towards Rs205. The banking sector remains strong, adding to the positive outlook. Maintain a strict stop loss at Rs192 for risk control.

Concor | TRADE-BUY | CMP: Rs712-717 | SL: Rs700 | TARGETs: Rs740-750

Concor is witnessing strong accumulation, indicating potential for an upward move. The stock is holding well above key support zones, and a break past Rs720 could fuel a rally towards Rs740-750. Positive sentiment in the logistics sector further strengthens the bullish case. A stop loss at Rs700 should be maintained to manage downside risk.

(Source: Mehta Securities)