Weak Texture May Continue
If BSE Sensex stays below 79,000, it may drop to 78,500 or 78,200; a break above it could trigger a rebound to 79,300-79,500
Weak Texture May Continue
Mumbai: On Tuesday the benchmark indices witnessed a sharp selloff, the Sensex was down by 790 points.Among Sectors, almost all the major sectoral indices witnessed profit booking at higher levels but PSU Banks and Auto indices lost the most shed nearly 2 percent. Technically, on daily charts, it has formed long bearish candle and on intraday charts, it is holding lower top formation, which is largely negative.
Shrikant Chouhan, Head Equity Research, Kotak Securities, said:“We are of the view that, as long as market is trading below 79,000 the weak texture is likely to continue.” Below the same, the correction wave could continue till 78,500. Further down side may also continue which could drag the Sensex till 78,200.On the flip side, dismissal of 79,000 could change the sentiment. Above 79,000 it could bounce back till 79,300-79,500.
The Indian stock market experienced a significant downturn after initially opening in positive territory. The BSE Sensex plummeted by 820 points (1.03%) to close at 78,675.Vaibhav Vidwani, Research Analyst, Bonanza said, “This decline was attributed to increased selling pressure from foreign institutional investors and disappointing quarterly earnings from several companies. Key contributors to the Sensex’s drop included HDFC Bank.”
Other notable losers were SBI and Tata Motors. Despite the overall bearish sentiment, sectors like Nifty IT and Nifty Realty showed slight improvement.
STOCK PICKS
Aarti Industries| TRADE-BUY | CMP: Rs446.25 | SL: Rs425 | TARGET: Rs475
Aarti Industries is trading at a crucial support level, providing a favorable risk-reward ratio for entry. This support has held well historically, making it a strong buy zone with limited downside risk. The stop loss at Rs425.00 helps safeguard against adverse movement, while momentum indicators signal potential upside. Targeting Rs475.00, the stock is well-positioned for gains.
Waaree Energies | TRAD-BUY | CMP: Rs2,863 | SL: Rs2,700 | TARGET: Rs3,600
Waaree Energies has recently rebounded from both trendline and anchored VWAP support, indicating strong underlying strength. Trading at Rs2863.00, it presents a strategic entry with a controlled stop loss at Rs2700.00. This technical setup provides a favourable risk-reward ratio, targeting Rs3600.00, and positions the stock for continued upward momentum.
(Source: Riyank Arora, technical analyst at Mehta Equities)
