Market is largely negative

Mumbai: The benchmark indices witnessed a volatile trading session. After a roller-coaster activity, the Sensex was down by 62 points. Among sectors, the PSU Bank Index was the top gainer, rallying over 1.89 per cent, whereas the Defence index was the top looser, shed 1.20 per cent.

Technically, after a positive open, the market took resistance near 80,800 and, due to profit booking at higher levels, it corrected sharply. From the day’s highest point, it shed nearly 600 points. In addition, on daily charts, it has formed a bearish candle, and on intraday charts, it continues to show a lower top formation, which is largely negative.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We are of the view that the short-term market outlook is weak, but since it is oversold, a strong possibility of a quick pullback rally cannot be ruled out.

For day traders, 80,800 would act as an immediate resistance zone. “If the market successfully clears this zone, it could bounce back up to 81,000-81,300. On the other side, below 80,300, the selling pressure is likely to accelerate. Below this level, it could retest the levels of 80,000-79,800.”

STOCK PICKS

Titan | TRADE – BUY | CMP: Rs3,401 | SL: Rs3,350 | TARGETs: Rs3,480-Rs3,520

Titan is sustaining above key support and continues to show strength with steady volumes. RSI remains positive, confirming strong momentum. Holding above Rs3,401 could lift the stock toward Rs3,480 and Rs3,520. A stop-loss at Rs3,350 is advised to manage downside risk.

Ixigo | TRADE – BUY | CMP: Rs275 | SL: Rs265 | TARGETs: Rs290-Rs295

Ixigo is consolidating near its base and gaining momentum. The stock is above short-term moving averages with improving volumes. Sustaining above Rs275 can trigger upside toward Rs290 and Rs295. Traders may enter fresh longs with a stop-loss at Rs265 for risk protection.

(Source: Riyank Arora Technical Analyst at Mehta Equities)