Market texture is weak

Mumbai, Oct 16: Today, the benchmark indices witnessed lacklustre activity, the Sensex was down by 319 points.

Among Sectors, Auto and IT indices shed over 1 per cent whereas buying interest continued in Reality stocks.

Technically, after a muted open entire day market consistently witnessed selling pressure at higher levels.

“We are of the view that, the intraday market texture is weak but fresh selloff possible only after dismissal of 81,300 below the same it could slip till 81,000-80,800”, says Shrikant Chouhan, Head Equity Research, Kotak Securities.

On the flip side, above 50 day SMA or 81,800 the sentiment could change. Above which, market could retest the level of 82,100-82,400. The current market texture is non-directional hence level based trading would be the ideal strategy for the day traders.

Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Markets were range-bound with a negative bias as investors mostly resorted to selective profit-taking, particularly in banking, IT and auto stocks. While weak global market cues also contributed to the overall weakness, persistent offloading of domestic shares by foreign investors this month have made local traders jittery and are mostly adopting a cautious approach.”

The Indian stock market closed lower today, with both the Sensex and Nifty indices experiencing declines. The Sensex fell by 318 points (0.39%) to settle at 81,501, while the Nifty decreased by 86 points (0.34%), closing at 24,971. Some good news was provided by declining crude oil prices, but this was offset by worries about major corporations' lower-than-expected performance and a large exodus of foreign investment, said Vaibhav Vidwani, Research Analyst, Bonanza.

Stock Picks

Platinum Industries | BUY | CMP: ₹446 | SL: ₹425 | TARGET: ₹500+

Platinum Industries has shown a strong breakout above its key resistance level at ₹445, signaling upward momentum. The stock is currently trading with an RSI (14) of 67, indicating bullish strength and healthy demand. A buy is recommended at ₹451, with a stop loss at ₹425 to manage downside risks. The stock has the potential to surge towards ₹500+, with further upside on sustained momentum. Strong volume activity supports this breakout, making it a favorable opportunity for gains.

Five Star Business | BUY | CMP: ₹900 | SL: ₹870 | TARGET: ₹950 / ₹975

Five Star Business has broken through a key resistance level at ₹895, backed by robust buying interest. The RSI (14) stands at 74, reflecting strong momentum and overbought conditions that can extend higher in the near term. A buy is recommended at ₹903, with a stop loss at ₹870 to safeguard positions. Target levels are set at ₹950 and ₹975, with the potential for further gains if the current bullish trend persists. This stock offers a promising risk-reward ratio given the strong technical setup.

(Source_Riyank Arora Technical Analyst at Mehta Equities)