Weekly Charts Indicate Bearish Bias
As long as it remains below 78,300, weak sentiment is likely to continue, and the market could slip to 77,500-77,000; However, above 78,300, it is likely to continue up to 80,000 and up to 80,600
Weekly Charts Indicate Bearish Bias
Mumbai: In the last session of the week, the benchmark indices corrected sharply with BSE Sensex going down by 4,100 points. Among sectors, the Pharma index outperformed, rallying over 1.5 per cent, whereas the Metal and Bank Nifty indices corrected sharply, shed over five per cent.
During the week, the market slipped below the 20-day and 50-day Simple Moving Averages (SMA), and post-breakdown, selling pressure intensified. Technically, the weekly charts have formed a long bearish candle, and after a long time, the Sensex closed below the 200-day SMA, which is largely negative.
Amol Athawale, V-P (technical research), Kotak Securities, said: “We believe that as long as the Sensex remains below the 200-day SMA or 78,300, weak sentiment is likely to continue. Below this level, the market could slip to 77,500-77,000.” On the other hand, if it rises above 78,300, the pullback formation is likely to continue up to 80,000. Further upside may also occur, poten-tially lifting the market up to 80,600.
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Nervousness continued to grip investors and stocks across-the-board went into a tailspin as the dollar’s continuing strength against the rupee has been prompting foreign investors to flee local equities and take shelter in safe haven dollar assets.”
Investors are also apprehensive about Trump’s trade policies when he takes charge in mid Janu-ary next year, as his aggressive policies could further roil global markets.
Vaibhav Vidwani, research analyst, Bonanza, said: “The Indian stock market faced significant selling pressure, with the BSE Sensex plunging over 1,150 points to close at 78,041.59, marking its fifth consecutive day of losses. This decline was largely attributed to a combination of global market pressures and domestic factors.”
STOCK PICKS
HDFC Bank | TRADE-BUY: Rs1,771 | SL: Rs1,750 | TARGET: Rs1,810
HDFC Bank is trading near a key support level around Rs1,770. If the stock holds this level, it is likely to move towards Rs1,810. However, if it drops below Rs1,750, further downside may follow, so the stop loss is crucial.
CDSL | TRADE-BUY: Rs1,860 | SL: Rs1,800 | TARGET: Rs1,950
CDSL is showing strength near Rs1,860, and it could move towards Rs1,950 if it breaks above Rs1,900. The Rs1,800 level is an important support, and a fall below this could lead to a decline.
(Source: Riyank Arora, technical analyst at Mehta Equities)
