Mkt May Further Weaken

Mumbai: On Monday, the benchmark indices corrected sharply as BSE Sensex was down by 935 points. Among sectors, all the major sectoral indices were trading in the red, but Energy, Oil and Gas indices corrected sharply, shed around three per cent.

Technically, after muted open market breached crucial support of 79,200 and post breakdown the selling pressure intensified. In addition, on daily charts it has formed long bearish candle, which also supports 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 oversold. Hence, strong possibility of one intraday pullback rally is not ruled out from the current levels.”

For the day traders now, 78,500 would be the key support zone. Above the same, it could bounce back till 79,000-79,200. On the flip side, fresh selloff possible only after dismissal of 78,500. Below the same, the market could slip 78,100-77,700.

Prashanth Tapse, Senior VP-Research, Mehta Equities, said: “Markets witnessed broader sell-off as investors turned risk averse ahead of key US election outcome and Federal Reserve’s policy decision in the next few days’ time. While stretched valuation concerns have been weighing for some time, the persistent foreign fund outflows have created a lot of uncertainty amongst the investors resulting in a steep correction. Also, corporate earnings have failed to meet expectations, which has further dampened investors’ sentiment.”

The Indian stock market experienced a significant downturn on today, with the BSE Sensex plunging over 941 points to close at 78,782 marking a decline of 1.18%.

Vaibhav Vidwani, Research Analyst, Bonanza said, “This sell-off was attributed to heightened market volatility ahead of the crucial U.S. presidential elections and concerns over foreign fund outflows. Investor sentiment remained cautious as the market grappled with external pressures and subdued earnings reports from several companies. Further also volatile trading secession are expected from developments in the U.S. Federal Reserve’s policy meeting later this week. Overall, today’s market performance reflects growing anxiety among investors amid global uncertainties.”

STOCK PICKS

HDFC Bank | TRADE- BUY: Rs1,714 | SL: Rs1,690 | TARGET: Rs1,800

The stock is showing a positive trend with strong support at around Rs1,690. It is trading above key moving averages, indicating bullish momentum. Buying is recommended around Rs1,714 with a target of Rs1,800 and a stop loss at Rs1,690. The RSI suggests healthy buying strength, supporting a potential upside.

Tata Steel | TRADE- BUY: Rs146.87 | SL: Rs142.50 | Target: Rs152.50

Tata Steel has recently bounced from its support at Rs142.50, showing resilience. A buy is recommended near Rs146.87, targeting Rs152.50, with a stop loss at Rs142.50. The MACD crossover indicates upward momentum, and the stock may continue to trend higher if it sustains above Rs145.

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