Nifty Holding Lower Top Formation

Mumbai: In this truncated week, the benchmark indices witnessed a sharp correction as BSE Sensex was down nearly 2,000 points. Among sectors, almost all the major sectoral indices registered profit booking at higher levels, but Metal index lost the most, shed over five per cent.

During the week, market slipped below 79,000 and post breakdown the selling pressure intensified. Technically, on weekly charts, it has formed long bearish candle and on daily charts, it is holding lower top formation, which is largely negative.

Amol Athawale, V-P (technical research), Kotak Securities, said: “We are of the view that the current market texture is weak, but oversold, for the positional traders now, 200-day SMA or 77,400 (Simple Moving Average) would act as a sacrosanct support zone.”

Above the same, we could expect one quick technical pullback rally. On the higher side, the market could bounce back till 78,500-79,000. However, dismissal of 77,400 could trigger further weakness. Below which, it could slip till 77,000-76,600.

Vaibhav Vidwani, Research Analyst, Bonanza, said: “Today, the Indian stock market experienced a mixed session, with the Nifty-50 and Sensex showing signs of recovery after recent declines. The Sensex gained 110 points to finish at 77,580.”

STOCK PICKS

Motherson | TRADE-BUY | CMP: Rs 165.33 | SL: Rs 158 | TARGET: Rs 170 / Rs 175

Motherson is trading near its 200-day moving average, providing a strong support level and a potential base for reversal. The RSI is indicating signs of recovery from lower levels, hinting at renewed buying interest. This setup suggests a possible upward movement towards Rs 170 and Rs 175. The position is attractive for short-term gains with minimal downside risk, backed by key technical support.

Grasim | TRADE-BUY | CMP: Rs 2534 | SL: Rs 2450 | TARGET: Rs 2650 / Rs 2700

Grasim is also approaching its 200-day moving average, a critical support that reinforces the likelihood of a bounce. The RSI levels show reversal signals from oversold conditions, indicating an improved buying sentiment. This alignment with technical indicators strengthens the outlook for a move toward Rs2650 and Rs 2700. The stock presents an opportunity for upside while managing risk with a defined stop loss.

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