Trading Undergoes Temporary Weakness
81,800 would be key levels for bulls, above which the market could bounce back till 82,150-82500; A fresh sell off is possible only after 81,400, below which it could slip till 81,000-80,800
Trading Undergoes Temporary Weakness
Mumbai: On Wednesday, the benchmark indices witnessed a profit booking at higher levels as BSE Sensex was down by 398 points. Among sectors, Oil Gas and PSU Bank indices lost the most shed over 1.5 per cent whereas selective Pharma and FMCG stocks registered buying interest at lower levels.
On daily charts it has formed small bearish candle on intraday charts it has formed lower top formation which suggest temporary weakness.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, the current market texture is weak, but fresh sell of possible only after dismissal of 20-day SMA (Simple Moving Average) or below 81,400. Below the same, it could slip till 81,000-80,800. On the flip side, 81,800 would be the key levels for the bulls. Above which, it could bounce back till 82,150-82,500.”
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Volatility marked the trading session with intense profit-taking in late trades dragging key indices deeper in red at close. All eyes will be on key US inflation data on Friday that will give some hint about the Federal Reserve’s likely move on interest rates in its policy meeting later this month.”
STOCK PICKS
Precision Camshafts Ltd | Buy: Rs262 | SL: Rs250 | Target: Rs280-Rs300
PRECAM is exhibiting strong upward momentum, with the stock trading near a key support level of Rs250. A buy recommended supported by favorable technical indicators. The stock’s price action suggests a potential breakout towards higher levels, making it a viable opportunity for short-term gains.
Shriram Properties Ltd | Buy: Rs132 | SL: Rs125 | Target: Rs145-Rs150
Shriram Properties is showing steady accumulation with an upward trajectory, supported by healthy volumes. A buy is poised to benefit from ongoing positive sentiment in the real estate sector. The potential upside offers an attractive risk-reward ratio for short-term traders.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
