Market Is Largely Negative

Mumbai: On Thursday, the benchmark indices continued selling pressure at higher levels as BSE Sensex was down by 423 points. Among sectors, PSU Banks, Media, Metal indices lost the most shed over two per cent whereas despite weak market sentiment Reality index outperformed, rallied nearly one per cent. Technically, on daily charts the index has formed bearish candle and it also holding lower top formation, which is largely negative.

“We are of the view that, the current market texture is weak but oversold. Hence, strong possibility of one quick pullback rally is not ruled out. For the traders now, 77,150 and 77,300 would be the key levels,” says Shrikant Chouhan of Kotak Securities.

Above 77,300, we could see one quick pullback rally till 77,700-78,000. On the flip side, fresh selloff possible only after dismissal 76,900.Below which the selling pressure is likely to accelerate. Below the same market could slip till 76,600-76,500.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “While the market is in the midst of a bear hug for the past few weeks, today’s fall can also be attributed to the news of Adani group facing bribery charges which triggered a massive sell-off in its group stocks. Besides the news, most of the Asian and European markets were in negative territories which also weighed on the sentiment.”

“The index opened lower and faced selling pressure throughout the session, ultimately falling over 168 points. This decline was exacerbated by a sharp drop in Adani Group stocks, which plunged by up to 20 per cent amid ongoing market concerns, said Vaibhav Vidwani of Bonanza Portfolio.

STOCK PICKS

Indian Hotels Company (IHCL)| TRADE-BUY: Rs786 | SL: Rs770 | TARGET: Rs825

Indian Hotels is showing strong resilience near its support zone of Rs780- Rs785, with the RSI (14) at 40, indicating a steady momentum build-up. The price action suggests consolidation after a recent pullback, setting the stage for an upward move. The stock is trading above its 50-day moving average, reinforcing its positive trend. A breakout above Rs790 could trigger a swift move towards Rs825. The risk-reward ratio remains favorable, provided the Rs770 support level holds firm.

Power Grid Corporation | TRADE-BUY:Rs325 | SL: Rs310 | TARGET: Rs360

Power Grid has recently rebounded from a critical horizontal support level at Rs320, with the RSI (14) at 36, indicating a gradual recovery from oversold levels. The stock is forming higher lows on the daily chart, hinting at a potential trend reversal. A breakout above Rs330 could accelerate buying momentum, paving the way for a target of Rs360. The MACD crossover adds to the bullish outlook, and the Rs310 stop loss ensures limited downside risk.

(Source: Riyank Arora,

technical analyst at Mehta Equities)