Market May Remain Weak

Mumbai: The market remained bearish ahead of the key event of the Fed meeting in the US. Also, the weekly expiry pressure spoiled the market momentum. Technically, it failed to sustain above 80,300 levels which turned negative for the market and it closed at the lowest point of the day at 79,400. Most indices closed in the negative zone, however, metals and commodities remained the top losers.

Shrikant Chouhan, Head-Equity Research, Kotak Securities, said: “Technically, until the market does not cross 80,300, the market may remain weak and re-test the levels of 78,800 or 78,500. If 23800/78200 gets rejected, we may see a quick sell-off towards 23500/77300, which has the support of 200 days SMA.”

The strategy should be to reduce weak long positions if the indices break the 78,200 levels. For Bank-Nifty, support exists at 51500, below which it can again fall to 51200. On the higher side, 52200 would offer resistance to the bulls.

STOCK PICKS

Biocon | TRADE-BUY: Rs328 | SL: 320 | TARGETs: Rs345 and Rs350

Biocon has established strong support around the Rs328 level, with a bullish reversal pattern emerging at this price point. The stock is positioned above its 20-day moving average, suggesting upward momentum. The RSI is showing a positive divergence, reinforcing the potential for an upward move toward Rs345 and Rs350. A strict stop loss at Rs320 is advised to manage risk.

Apollo Hospitals | TRADE-BUY: Rs7424 | SL: Rs7300 | TARGETS: Rs7600 and Rs7650

Apollo Hospitals is demonstrating a strong bullish trend, with a recent breakout above the resistance level of Rs7400. This breakout is supported by increased volume, indicating strong buying interest. With the RSI in a favorable position and momentum indicators supporting a continuation, the stock is expected to approach targets of Rs7600 and Rs7650. A stop loss at Rs7300 is recommended to limit downside risk.

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