Mkts May Fall Further

Mumbai: On Monday, the benchmark indices witnessed a selling pressure at higher levels, with the Nifty ending 168 points lower, while BSE Sensex was down by 483 points. Among sectors, the Defence and Media indices corrected sharply, whereas buying was observed in selective Pharma and Healthcare stocks. Technically, after an early morning intraday rally, the market once again faced resistance near the 200-day SMA (Simple Moving Average) at 79,000 points. Due to profit booking at higher levels, it corrected sharply. From the day’s highest point, the market slipped nearly1,000 points. Additionally, a bearish candle on the daily charts and the lower top formation also support further weakness from current levels.

Analysts are of the view that as long as the market is trading below 78,700 level, weak sentiment is likely to persist, and the market could retest the levels of 77,700-77,500. Shrikant Chouhan, head (equity research), Kotak Securities, said: However, if it moves above 78,700, the sentiment may change. Above that level, it could bounce back to 79,000. Further upside may also continue, potentially lifting the market to 79300.”

The BSE Sensex fell by 1.30 per cent, losing 1,064 points to settle at 80,684. 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. Investors are now closely monitoring the upcoming US Federal Reserve meeting for potential impacts on global markets.

STOCK PICKS

EIEL | TRADE-BUY | CMP:Rs300 | SL: Rs289 | TARGETS: Rs350/Rs380

EIEL has touched its IPO listing day support and is holding strong, signalling a potential sharp bounce ahead. The AVWAP level provides solid backing, and with volumes expected to increase, the stock could see a quick upward move. Targets are set at Rs350 and Rs380, making this an attractive buy for short-term traders.

Amber Enterprises |TRADE-BUY: Rs7335 | SL: Rs7100 | TARGET: Rs7800

Amber Enterprises is re-testing its breakout level of Rs7,150 and showing signs of strength from lower levels. The stock is poised for a sharp recovery, supported by building momentum and expected volume pickup. With a solid setup in place, it looks ready to hit the target of Rs7,800, offering a good opportunity for buyers.

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