Mkt May Fall Further

Mumbai: On Tuesday, the benchmark indices continued profit booking at higher levels. BSE Sensex dropped 1,064 points. Among sectors, almost all the major sectoral indices registered profit booking at higher levels, but the PSU Bank index lost the most, shedding 1.89 per cent.

Technically, after a weak open, the market faced selling pressure throughout the day. A bearish candle formed on the daily charts, closing below 81,200, 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, but a fresh sell-off is possible only after the dismissal of 80,500.” Below this level, the market could slip to 80,200-80,000. On the other hand, above 81,000, we could expect a pullback rally up to 81,200-81,300.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “While weak Asian cues weighed on the market sentiment, the record high trade deficit in November pushed the rupee to a new low which caused investors to run for cover triggering panic selling in domestic equities. We expect the sentiment to remain cautious with a weak bias over the next few days as investors await the US FOMC meeting outcome.”

The Indian stock market closed sharply on lower note with both the Sensex experienced significant declines. The BSE Sensex fell by 1.30%, losing 1,064 points to settle at 80,684. Vaibhav Vidwani, Research Analyst, Bonanza, said: “Market sentiment was dampened by concerns over a widening trade deficit, which reached a record high of $37.8 billion in November. This raised fears about the rupee’s stability and prompted selling pressure across multiple sectors, particularly in autos, banks, and metals.”

STOCK PICKS

ABB India | TRADE-BUY |CMP: Rs7,817 | SL: Rs7,500 | TARGETS: Rs8,400 and Rs8,500

ABB India has broken above its 9-period and 21-period exponential moving averages, signalling strong bullish momentum. The stock is trading well above its 200-day moving average, reinforcing its upward trend. With an RSI of 63, indicating positive momentum, ABB India is positioned to reach targets of Rs8,400 and Rs8,500. A stop-loss at Rs7,500 is recommended for effective risk management.

HUDCO | TRADE-BUY |CMP: Rs256.70 | SL: Rs244 | TARGET: Rs295

HUDCO has broken out above Rs255.80, indicating a strong upward trend. The stock is above key moving averages, with an ADX of 30 and an RSI of 68, signalling robust momentum. Given the favourable technical setup, the stock is expected to continue higher towards Rs295. Traders should enter at current levels, setting a stop-loss at Rs244 to manage risk effectively while targeting the upside potential.

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