Market may weaken further from current level

The benchmark indices witnessed a volatile trading session. After a roller-coaster activity, the Sensex was down by 436 points.

Among sectors, the Nifty PSU Bank index rallied 1.25 per cent, whereas the IT index lost the most, shedding 1.25 percent. Technically, after an early morning intraday sharp selloff, the market took support near 84,400 and bounced back.

However, the short-term texture of the market is still on the weak side. Additionally, on daily and intraday charts, it is holding a lower high formation, which supports further weakness from the current levels.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We are of the view that the current market texture is weak but oversold, hence we could see an extension of the pullback rally in the near future. For day traders, 84,400 would act as a key support zone.

As long as the market is trading above this level, the pullback formation is likely to continue. “On the higher side, 85,000 and 85,200 would be immediate resistance areas for the bulls. On the flip side, below 84,400, the selling pressure is likely to accelerate. Below this, the market could retest the level of 84,000.”

STOCK PICKS

Kaynes Technology | TRADE – BUY | CMP: Rs4,331 | SL: Rs4,180 | TARGETs: Rs4,500-Rs4,650

Kaynes has delivered a sharp breakout with strong follow-through buying, supported by a major volume surge. The stock has reclaimed all short-term moving averages and is forming a powerful bullish continuation pattern. Momentum indicators are highly positive, with RSI in expansion mode, confirming strength. Sustaining above Rs4,350 can extend the move toward Rs4,500 and Rs4,650. SL at Rs4,180.

Eris Lifesciences | TRADE – BUY | CMP: Rs1,701.30 | SL: Rs1,650 | TARGETs: Rs1,760-Rs1,810

Eris is showing strong momentum after a fresh breakout from its consolidation band. The stock has held its support zones firmly and is now witnessing aggressive buying. RSI and trend structure both point toward sustained upside. A move above Rs1,715 may accelerate a rally toward Rs1,760 and Rs1,810. Maintain SL at Rs1,650.

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