Market May Further Fall

Mumbai: On the last day of November F&O series, the benchmark indices corrected sharply. BSE Sensex was down by 1,190 points. Among sectors, IT index lost the most shed over two per cent whereas despite weak market sentiment PSU.

Bank index outperformed rallied 1.25 per cent. Technically, after a muted open market breached 79,850 support level and post breakdown the selling pressure intensified. On daily charts, it has formed long bearish candle which indicating further weakness from the current levels.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that the current market texture is weak and technical bounce back possible only after dismissal of 79,200 or 20-day SMA (Simple Moving Average).”

Below 20-day SMA or 79,200 level, the market is likely to retest the levels of 78,500-78,200. On the flip side,Above, 79,200 it could bounce back till 79,500-79,800.

The Indian stock market experienced significant turbulence with BSE Sensex plunging over 1,200 points. The day began with a slight uptick, but volatility surged as the derivatives expiry approached, leading to a sharp sell-off in technology and auto sectors, which were among the hardest hit.

Vaibhav Vidwani, research analyst, Bonanza, said: “Investor sentiment was further dampened by concerns surrounding US Federal Reserve policies and persistent inflationary pressures that affected global markets. Despite this downturn, some stocks like Adani Enterprises saw gains, reflecting selective buying amidst broader market weakness.”

STOCK PICKS

Bharat Forge | TRADE-BUY | CMP: 1,329 | SL: Rs1,300 | TARGET: Rs1,360 toRs1,375

Bharat Forge has broken out above its key resistance level, confirming a bullish trend continuation. The stock is trading near its multi-week highs, supported by rising volume. Riyank Arora technical analyst at Mehta Equities sees strong buying momentum. The breakout is backed by a sustained move above critical trend lines, with RSI indicating positive momentum. Immediate support at Rs1,300 adds conviction for further upside towards the target levels.

BHEL | TRADE-BUY | CMP: Rs252.49 | SL: Rs247.50 | TARGET: Rs270

BHEL has shown a strong breakout from a well-defined consolidation zone, indicating renewed bullish momentum. The stock is trading above key resistance levels, with improving volumes signalling increased participation. The RSI reflects strength, aligning with the breakout, while immediate support near Rs247.50 adds to the stock’s reliability for short-term gains. The upward trend remains intact, targeting Rs270.

(By Riyank Arora technical analyst at Mehta Equities)