Short-term market sentiment is positive

The benchmark indices witnessed profit booking at higher levels. The Sensex was down by 65 points. Among sectors, the Digital index rallied 0.85 per cent, whereas the Reality index lost the most, shedding 1 percent. Technically, after a gap-up open, the market consistently faced selling pressure at higher levels. From the day’s highest level, the market corrected nearly 600 points.

On daily charts, it has formed a bearish candle, indicating further weakness. However, the short-term market sentiment remains positive. “We believe that intraday market formation is range-bound, and this range-bound activity is likely to continue in the near future,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

For day traders, 85,500 and 85,000 remain key support zones, while 86,000-86,200 would act as crucial resistance areas for the bulls. However, below 85,000, the uptrend could become vulnerable.

STOCK PICKS

Usha Martin | TRADE – BUY | CMP: Rs422 | SL: Rs405 | TARGETs: Rs440-Rs455

Usha Martin is holding strong above its key support zone near Rs405. The stock is forming steady higher lows, signalling sustained accumulation. Momentum indicators show early strength, and a move above Rs428 could accelerate upside toward Rs440 and Rs455. Maintain SL at Rs405.

Sterling Tools | TRADE – BUY | CMP: Rs283 | SL: Rs270 | TARGETs: Rs298-Rs310

Sterling Tools continues to trade in a rising channel with strong support around Rs270. The stock is showing improved volumes along with a positive RSI slope, hinting at renewed momentum. A breakout above Rs286 may push the stock toward Rs298 and Rs310. Keep SL at Rs270.

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