Mkt may weaken further from current levels

Mumbai: The benchmark indices corrected sharply. The Sensex was down by 780 points. Among sectors, all the major sectoral indices traded in the red, but the Metal Index lost the most, shed 3.45 per cent.

Technically, the market breached the 20-day SMA (Simple Moving Average) support zone, and post-breakdown, selling pressure intensified. On daily charts, it has formed a long bearish candle, indicating further weakness from the current levels.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We are of the view that as long as the market is trading below 84,500, weak sentiment is likely to continue on the downside, and the market could slip till 84,000-83,700. On the flip side, if it moves above 84,500, the pullback could continue till 84,800-85,000.”

STOCK PICKS

DLF | TRADE – SELL | CMP: Rs692.40 | SL: Rs715 | TARGETs: Rs665-Rs645

DLF is showing signs of exhaustion after a sharp upmove, with price slipping below short-term support levels. The stock is facing selling pressure near its recent highs, and momentum indicators are cooling off. RSI has started to turn downward, indicating weakening strength. A sustained move below Rs685 can drag the stock toward Rs665 and Rs645. Maintain a stop-loss at Rs715.

Tata Power | TRADE – SELL | CMP: Rs374.20 | SL: Rs385 | TARGETs: Rs360-Rs350

Tata Power has broken below its immediate support zone after failing to sustain higher levels. The stock is forming lower highs on the intraday charts, suggesting distribution. Momentum indicators remain weak, hinting at further downside. If it trades below Rs370, selling pressure may intensify toward Rs360 and Rs350. SL to be placed at Rs385.

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