Market may weaken further from current levels

The benchmark indices continued profit booking at higher levels. The Sensex was down by 345 points.

Among sectors, the Media Index gained 0.75 per cent, whereas the Consumer Index lost the most, shedding nearly 1 per cent. Technically, after a muted open, the market slipped below the 85,000 mark, and post-breakdown, intraday selling pressure increased. A bearish candle on daily charts and a lower top formation on intraday charts indicate further weakness from the current levels.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We believe that 85,000 or the 20-day SMA will be the key resistance zone for day traders. As long as the market trades below this level, weak sentiment is likely to continue. “On the downside, it could slip to 84,400–84,200. On the flip side, above 85,000, the market could bounce back up to 85,300. Further upside may also continue, which could lift the index to 85,500.”

STOCK PICKS

BPCL | TRADE – BUY | CMP: Rs371.60 | SL: Rs355 | TARGETs: Rs385-Rs400

BPCL is maintaining a strong bullish structure after holding firmly above its key support near Rs355. The stock is trading above its short-term moving averages, indicating continued accumulation. Momentum indicators remain positive, with RSI staying in the bullish zone. A sustained move above Rs375 can trigger further upside toward Rs385 and Rs400. Maintain a stop-loss at Rs355.

GMDC | TRADE – BUY | CMP: Rs597.25 | SL: Rs575 | TARGETs: Rs620-Rs645

GMDC is showing steady upward momentum with higher-low formations visible on the daily chart. The stock is holding above its breakout zone, reflecting strong buying interest. RSI remains positively placed, suggesting continuation of the uptrend. A move above Rs600 can accelerate gains toward Rs620 and Rs645. Keep SL at Rs575

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