Sensex Continues To Be In Bearish Zone

Mumbai: After gyrating nearly 700 points in early trades, Sensex moved in a range-bound manner thereafter and ended marginally lower on selective selling in banking, telecom, metal, oil & gas and realty stocks.

Prashanth Tapse, Senior VP-Research, Mehta Equities, said: “Despite recovery in global indices, Indian markets continue to bore the brunt of FII fund outflows. The US Fed rate cut failed to enthuse local investors as the undertone remains caution with a negative.”

Vaibhav Vidwani, Research Analyst, Bonanza, said: “Indian stock markets closed on a bearish note, influenced by ongoing global uncertainties and continued foreign institutional investor (FII) outflows.”

The Sensex fell by 55 points to finish at 79,486, while the Nifty dropped 51 points, closing at 24,148. Market sentiment was further dampened by geopolitical tensions, particularly concerning Iran and Israel, which have raised concerns about stability in the region.

STOCK PICKS

Ashok Leyland | TRADE-BUY: Rs221.85 | SL: Rs216.00 | TARGET: Rs227.50

Ashok Leyland is showing strength at its recent support level near Rs220, with a bullish reversal pattern forming on the daily charts. The stock has also breached its 20-day moving average, indicating renewed buying momentum. Volume buildup at lower levels, along with a positive RSI trend, suggests potential upside toward Rs227.50. Investors are advised to maintain a stop loss at Rs216.00 to manage downside risks.

Indian Hotels | TRADE-BUY: Rs730 | SL: Rs710 | TARGET: Rs775

Indian Hotels has displayed a solid breakout above its consolidation zone around Rs725, signaling further upward momentum. The RSI is firmly in bullish territory, supported by a rising trendline that underpins the stock’s strength. With volume picking up and key moving averages aligned positively, the stock is well-positioned to reach targets of Rs775. A strict stop loss at Rs710 is recommended to protect capital.

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