Market is largely negative

The benchmark indices corrected sharply. The Nifty ended 225 points lower, while the Sensex was down by 610 points. Among sectors, all the major sectoral indices traded in the red, but Défense and Realty indices lost the most, shedding over 3 percent. Technically, on dai-ly charts, it has formed a long bearish candle and also closed below the 20-day SMA (Simple Moving Average), which is largely negative.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We believe that as long as the market is trading below the 20-day SMA or 85,400, the weak sentiment is likely to continue. On the downside, it could slip till 84,800. Further downside may also continue, potentially drag-ging the index to 84,500. “On the flip side, above 85,400, we could see a one pullback rally up to 85,700-85,800.”

STOCK PICKS

Matrimony | TRADE – BUY | CMP: Rs525.35 | SL: Rs505 | TARGETs: Rs545-Rs565

Matrimony is witnessing strong follow-through buying after a sharp rebound, with the stock re-claiming key short-term averages. Price action shows clear strength as it breaks out from a multi-day consolidation range. Volumes have picked up, indicating renewed institutional participation. RSI is rising steadily, confirming momentum expansion. A move above Rs530 may extend the rally toward Rs545 and Rs565. Traders may maintain a stop-loss at Rs505 to protect positions.

Rolex Rings | TRADE – BUY | CMP: Rs123.67 | SL: Rs118 | TARGETs: Rs130-Rs136

Rolex Rings has shown strong upward traction after bouncing sharply from the Rs118 support zone. The stock is forming a higher-low structure and is now trading back above important moving averages. Momentum indicators reflect improving strength, with RSI turning decisively upward. A push above Rs125 can trigger the next leg of the rally toward Rs130 and Rs136. Long positions can be considered with a stop-loss at Rs118.

(Source: Riyank Arora, technical analyst at Mehta Equities)