Short-Term Mkt Texture Turns Sluggish
A fresh selloff may occur if the it breaks below 77,800, potentially retesting 77,500-77,300; Above 77,800, a pullback could continue till 78,500-78,700 and further to 79,200-79,500 levels
Short-Term Mkt Texture Turns Sluggish
Mumbai: On Tuesday, the benchmark indices witnessed an intraday recovery from the lower levels, BSE Sensex was down by 109 points. Among sectors, the IT index lost the most, shedding over 1.2 per cent, whereas the Defence and Oil and Gas indices rallied over one per cent. Technically, after an early morning intraday correction, the market eventually took support near 77,500 and bounced back sharply. However, the short-term market texture is still on the weak side.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that the current market texture is weak, but a fresh selloff is possible only after a dismissal of 77,800.” Below that level, the market could retest the level of 77,500-77,300. On the other side, as long as it is trading above 77,800, a pullback formation is likely to continue. On the higher side, it could bounce back to 78,500-78,700.Above this level, the market could move up to 79,200-79,500. Conversely, if it drops below 78,150, it could retest the levels of 77,900-77,700.
STOCK PICKS
Ultra tech cement | TRADE-BUY | CMP: Rs11,472 | SL: Rs11,000 | TARGET: 12,000
The stock has rebounded from its Anchor VWAP support zone near Rs 11,400, aligning with a key horizontal support level. A breakout above the descending trendline resistance confirms renewed bullish momentum. The ongoing uptrend, reinforced by strong volume inflow, suggests further upside potential. Positive sentiment from favorable news flow supports the likelihood of achieving the projected targets.
IGIL | TRADE-BUY |CMP: Rs483 | SL: Rs465 | TARGET: Rs525 and Rs550
The stock has established a solid base near the Anchor VWAP support zone at Rs 480, holding above the 20-day moving average. A breach of Rs 490, the immediate resistance, would signal a continuation of the bullish trajectory. The upward-sloping trendline from recent lows reinforces the stock’s positive structure. With a tight stop loss, the trade offers an excellent risk-reward ratio for a move toward higher levels.
(Source: Riyank Arora, technical analyst at Mehta Equities)
