Go for selective buying

Mumbai: On Tuesday, markets opened higher due to positive Asian markets, but they failed to sustain these levels and closed at the day’s lowest point. Although the market did not break the previous day’s lows, it closed below the closing of the previous day. Apart from Nifty Realty, Metal, and IT, other indices closed in the red.

Based on the short-term market structure, the trend-setting levels are 78,290. Shrikant Chouhan – Head – Equity Research, Kotak Securities, said: “If the market falls below this, it may decline to 78,000-77,800, where it has support from retracements and long-term averages.” It’s advisable to consider selective buying around this level.

On the upside, the major resistance levels are 79,000 and 79,700.

Prashanth Tapse, Senior VP (Research), Mehta Equities, said: “Negative sentiment continued to prevail in the US and European equities which weighed on local markets as indices fell sharply towards the close on profit-taking in banking, telecom and auto shares. After surging over 1,000 points in early trades, markets steadily erased gains and slipped into the red with the rupee scaling to a new low too contributing to the overall weakness.”

Vaibhav Vidwani”, Research Analyst, Bonanza Portfolio, said: “Taking cues from the global markets, domestic market closed on a negative note, correction was primarily driven by disappointing US job data which caused worries about a potential recession in US as unemployment rate reached to 4.3%, Lot of Indian companies have exposure in Bangladesh, Japan bank rate increase and further, escalating geopolitical tensions in the Middle East.”

STOCK PICKS

ICICI Bank | CMP: 1167 | Buy | SL: 1150.00 | Target: 1200.00

ICICI Bank has reached a critical support level of 1170 on the daily time frame charts, indicating potential for reversal from lower levels. Despite market volatility, the stock is poised to rise towards a target of 1200 and beyond. A strict stop loss should be set at 1150 to effectively manage risk.

Godrej Properties | CMP: 2934 | Buy | SL: 2775.00 | Target: 3100.00

Godrej Properties has touched its significant trendline support at 2811 and is maintaining its position above this level. With a positive overall trend and a favorable business update, the stock is anticipated to gradually advance towards a target of 3100 and beyond. It is advisable to set a strict stop loss at 2775 to manage risk effectively.

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

CMP (Current Market Price); SL (Stop Loss)/All prices in Rs