Market may weaken further from current levels

The benchmark indices witnessed profit booking at higher levels. The Sensex was down by 297 points. Among sectors, almost all the major sectoral indices experienced profit booking at higher levels, with the PSU Bank index losing the most, shedding over 1 per cent. Technically, after a positive open, the market consistently faced selling pressure at higher levels.

However, following a quick intraday correction, the market saw some recovery from the 81,800 levels. A bearish candle on the daily charts and a double top formation on intraday charts indicate further weakness from the current levels.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We believe that, although the intraday market texture is weak, a fresh sell-off is possible only if the level of 81,800 is breached. Below this, the market could slip to 81,600-81,300. “On the flip side, 82,300 would act as an immediate resistance zone for the bulls.

Above this, the market could continue its positive momentum up to 82,500-82,750.” The intraday market texture is volatile and non-directional; hence, level-based trading would be the ideal strategy for day traders.

STOCK PICKS

MTAR Technologies | TRADE – BUY | CMP: Rs2,127 | SL: Rs2,040 | TARGETs: Rs2,280-Rs2,350

MTAR Technologies is displaying renewed buying momentum after consolidating near its short-term support zone. The stock has formed a bullish reversal candle on the daily chart with improving volumes. Sustaining above Rs2,127 could push prices toward Rs2,280 and Rs2,350. Traders can consider fresh long positions with a stop-loss placed at Rs2,040 to protect downside risk.

Landmark Cars | TRADE – BUY | CMP: Rs643 | SL: Rs610 | TARGETs: Rs700-Rs725

Landmark Cars has rebounded from its recent base formation and is trading above its 20-day moving average, indicating renewed strength. The stock is witnessing accumulation with RSI trending upward. A move above Rs650 could open the path toward Rs700–Rs725. A stop-loss at Rs610 is recommended to safeguard against volatility.

(Source: Riyank Arora Technical Analyst at Mehta Equities)