Sensex Forms Long Bearish Candle On Weekly Charts

Mumbai: In the last session of the week, the benchmark indices corrected sharply as BSE Sensex was down by 3,883 points. Among sectors, except Metal index all the major sectoral indices registered selling pressure at higher levels. Reality index was the top looser of the week shed nearly eight per cent.

During the week, market was consistently facing selling pressure at higher levels and after a long time it closed below 20-day SMA (Simple Moving Average), which is largely negative. Technically, on weekly charts, the index has formed long bearish candle and on intraday charts, it is holding lower top formation, which supports further weakness from the current levels. “We are of the view that, the current market texture is weak, but oversold. For the short-term traders now, 50 day SMA or 81,800 would act as a sacrosanct support level. Above the same, we could see one technical pullback rally till 82,400. Further upside may also continue which could lift the market until 82,800”, says Amol Athawale, V-P (technical research), Kotak Securities.

On the flip side, below 81,800 or 50-day SMA, the selling pressure is likely to accelerate. Below the same the market could retest the level of 81,300-81,000. Domestic stock market ended on a negative note, with the BSE Sensex dropping 808 points, or 0.98 per cent, to close at 81,688.Vaibhav Vidwani, research analyst, Bonanza Portfolio, said: “This decline was fuelled by concerns over a potential slowdown in the US economy, highlighted by disappointing manufacturing data. Additionally, escalating tensions in the Middle East raised fears of disruptions to crude oil supplies from the region, leading to increased prices that adversely affect net importers like India.

STOCK PICKS

BUY: Thermax | CMP: Rs5,183 | SL: Rs5,000 | Targets: Rs5,325, Rs5,400

Thermax has surpassed its key resistance level at Rs5150, reinforcing its bullish trend. The increase in trading volume and a strengthening RSI further validate the stock’s upward momentum. With support firmly established at Rs5,000, it presents a compelling low-risk, high-reward scenario. Thermax appears well-positioned to achieve the short-term targets of Rs5,325 and Rs5,400.

BUY: HDFC Bank | CMP: Rs1,659 | SL: Rs1,630 | Targets: Rs1,725, Rs1,750

HDFC Bank has cleared an important resistance zone at Rs1,650, signalling a strong bullish move. The stock is backed by increasing volume and a rising RSI, indicating persistent buying pressure. With solid support at Rs1,630, this breakout presents an attractive trading opportunity. The stock is expected to push towards the near-term targets of Rs1,725 and Rs1,750.

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

CMP (Current Market Price); SL (Stop Loss)/All prices in Rs