Range-Bound Activity May Continue In Near Future

Mumbai: In the last week, the benchmark indices continued to experience selling pressure at higher levels. NSE Nifty ended 0.49 per cent lower, while BSE Sensex was down by 405 points. Among sectors, the IT index outperformed, rallied 3.57 per cent, whereas the Real Estate index lost the most, shed over nine per cent. Technically, the market is consistently facing selling pressure at higher levels and is holding a lower top formation on daily charts, which is largely negative.

For the bulls, the levels of 77,000 and 77,300 will act as key resistance areas, while 75,700 and 75,500 could serve as key support zones for traders. If the market surpasses 77,300, it could rally till 77,800-78,000. Conversely, if it falls below 75,500 selling pressure may intensify, potentially slipping till 75,200-74,700. Amol Athawale, Kotak Securities, said: “We believe that the current market texture is weak, but due to temporary oversold conditions, we could see range-bound activity in the near future.”

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Markets ended weak in volatile trades amid selling in auto, oil & gas and realty shares. A sharp appreciation in rupee against the dollar limited the fall, but undertone continues to remain cautious with a weak bias. Investors are likely to maintain caution ahead of the upcoming Union Budget announcement.” Indian stock market closed on a negative note, with the benchmark indices exhibiting volatility throughout the trading session. Vaibhav Vidwani, research analyst, Bonanza, said: “The BSE Sensex ended at 76,190, down 0.43 per cent, while the Nifty 50 closed at 23,092, reflecting a decline of 0.49 per cent from the previous day’s close.”

However, selling pressure persisted, particularly in large-cap stocks, influenced by mixed quarterly results from various sectors. In terms of sector performance, the IT and FMCG sectors showed resilience, while the broader market struggled.

STOCK PICKS

PFC| TRADE-SELL | CMP: Rs408 | SL: Rs415 | TARGET: Rs390

PFC is facing resistance near Rs415 levels, with recent price action indicating selling pressure in a weak power sector. The stock has broken below its important moving average, signalling a short-term downtrend. RSI is trending downward, indicating weak momentum, and the next support is visible near Rs390. Maintain a stop loss at Rs415 to manage risks

APOLLO TYRE| TRADE-SELL | CMP: Rs423 | SL: Rs430 | TARGET: Rs410

Apollo Tyre has been struggling to sustain above Rs425, with a bearish trend forming due to global economic concerns. The stock has breached key support levels, and technical indicators like MACD suggest further downside. The immediate target is Rs410, with a strict stop loss at Rs430 to cap losses if momentum reverses

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