Mumbai: On Wednesday, the benchmark indices witnessed a profit booking at higher levels. BSE Sensex was down by 280 points. Among sectors, Media index outperformed rallied 2.5 per cent whereas Bank Nifty index shed nearly one per cent.

Technically, after muted open market consistently facing selling pressure at higher levels. In addition, on Intraday charts the index still holding lower top formation, which supports further weakness from the current levels. However, the medium-term texture of the market is still in to the positive side.

Shrikant Chouhan, head, (equity research), Kotak Securities, said: “We are of the view that, 20-day SMA (Simple Moving Average) or 79,700 would act as a trend decider level for the traders. Above 79,700, the market could bounce back till 80,500-80,750.” On the other side, dismissal of 20 day SMA or 79,700 could accelerate the selling pressure. Below 79,700 market could retest the level of 79,300-79,000.

Prashanth Tapse, senior VP (research), Mehta Equities, said: “Profit-taking continued as investors cut their position in banking and automobile stocks, which led to a fall in key benchmark indices. However, markets ended off their lows on selective buying support although concerns of higher valuations continue to weigh.”

STOCK PICKS

CoForge| Buy | CMP: 6,318 | Stop-Loss: 6,100 | Target: 6,650 and 6,700

The stock is currently trading above its Anchor VWAP support level of 295, with immediate support at 300. This support level is critical for maintaining the bullish trend. The price action suggests that BHEL has found strong support at these levels and could see continued upward movement. The stock is showing signs of bullish momentum, with the RSI rising from 48, indicating potential upward movement. A stop-loss can be set at 295, with potential upside targets of 330 and 350.

Tata Consultancy Services (TCS) | Buy | CMP: 4,305 | Stop-Loss: 4,140 | Target: 4,750

TCS has achieved a significant breakout above its all-time high resistance mark of 4,355 in previous session, with volumes approximately 0.6 times the 30-day average. We expect potential targets of 4,750 and higher. A strict stop-loss should be set at 4,140. A breakout above 4,360 is likely to further enhance the stock’s momentum, supported by an RSI (14) around 72.00.

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

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