Market may weaken though temporarily

Mumbai: The benchmark indices witnessed profit booking at higher levels. The Sensex was down by 153 points. Among sectors, Reality and Media indices lost the most, shedding over 1 percent, while despite weak market sentiment, the IT Index outperformed, rallying 1.50 percent.

Technically, after an early morning intraday rally, the market registered selling pressure at higher levels. A reversal formation on daily charts indicates temporary weakness.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We believe that as long as the market is trading below 82,000, the weak sentiment is likely to continue on the downside, with potential slips to 81,500-81,300.

Further downside may also persist, which could drag the market down to 81,000. On the other hand, if the market moves above 82,000, it could rise to 82,300-82,500.”

The intraday market texture is non-directional and volatile; hence, level-based trading would be an ideal strategy for day traders.

STOCK PICKS

Yatharth Hospital | TRADE – BUY | CMP: Rs831 | SL: Rs790 | TARGETs: Rs880-Rs910

Yatharth Hospital is showing renewed buying interest after consolidating near Rs790. The stock is trading above its short-term moving averages, supported by rising volumes. RSI is trending upward, indicating bullish momentum. Sustaining above Rs831 can drive the stock toward Rs880 and Rs910. Traders may consider fresh positions with a stop-loss at Rs790 to manage risk effectively.

CMS Info System | TRADE – BUY | CMP: Rs382 | SL: Rs365 | TARGETs: Rs410-Rs425

CMS Info System has rebounded from its support near Rs365 and is trading above key moving averages. The stock is gaining momentum, supported by improving RSI and volume action. Holding above Rs382 could trigger a move toward Rs410 and Rs425 in the near term. Traders can look to buy at current levels with a stop-loss at Rs365 to limit downside risk.

(Source: Riyank Arora Technical Analyst at Mehta Equities)