Market Is Largely Negative

Mumbai: On Tuesday, the benchmark indices corrected sharply, the Sensex was down by 870 points. Among Sectors, all the major sectoral indices registered intraday profit booking at higher levels but Defense, Auto indices lost the most shed over 2 percent.

Technically, after a positive open market consistently witnessing selling pressure at higher levels. On daily charts it has formed long bearish candle and on intraday charts it is holding correction continuation 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 81700 the correction wave is likely to continue. ” On the down side market could retest the level of 80800-80500. On the higher side above 81700 the sentiment could change. Above the same, chances of hitting 82200 and 82500 would turn bright.

STOCK PICKS

BSE | BUY | TRADE-CMP: Rs7,385 | SL: Rs7,200 | TARGETs: Rs7,600–Rs7,800

BSE has shown a strong bounce from its support zone near Rs7,200 and is now regaining upward momentum. The stock is trading above key moving averages and forming a higher base, indicating strength. If it sustains above Rs7,400, it may witness a quick move toward Rs7,600 and then Rs7,800. The overall structure looks bullish and buying on minor dips is advisable. Traders can consider fresh entry with a stop loss at Rs7,200 to manage risk.

Akums Drugs | TRADE-BUY | CMP: Rs564 | SL: Rs545 | TARGETs: Rs585–Rs600

Akums Drugs has been forming a steady uptrend and is showing good strength near the Rs545 support area. The stock is attracting buying interest and looks ready for a breakout above Rs565. If that happens, it could see a sharp move toward Rs585 and Rs600. The price action shows accumulation at current levels, and the chart setup supports further upside. Traders can look to buy now or on slight dips, with a stop loss at Rs545.