Short-Term Market Texture Still Positive

Mumbai: The benchmark indices witnessed a profit booking at higher levels. BSE Sensex was down by 271 points. Among sectors, the Reality index outperformed, rallying over two per cent, whereas the Digital index lost the most, shed nearly 1.5 per cent.

Technically, after a muted open once again, the market witnessed selling pressure at higher levels. On daily charts, it has formed a small bearish candle, which indicates temporary weakness. However, the short-term texture of the market is still positive.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “For day traders, now 82,200 would act as a trend decider level. Below this, we could see an intraday correction down to 81,700-81,500.” On the other hand, a breach of 82,200 could change the sentiment. Above this, the market could rally up to 82,500-82,700.

Vaibhav Vidwani, research analyst, Bonanza, said: “The Indian stock market closed with notable downside pressure. The Sensex ended 271 points lower at around 82,059. The market decline was primarily driven by the Moody’s downgrade of the US sovereign credit rating from Aaa to Aa1, which rattled global investor sentiment.”

This downgrade raised concerns about rising US fiscal deficits and political gridlock, leading to increased risk aversion worldwide. Consequently, US Treasury yields spiked, with the 10-year yield rising to 4.52 per cent, making fixed-income assets more attractive compared to equities. This global backdrop weighed heavily on Indian markets, particularly on IT stocks, which fell over 1.30 per cent as these firms derive a significant portion of revenue from the US. Despite the setback, broader indices such as mid-caps and small-caps continued to show strength, supported by robust domestic earnings and easing geopolitical tensions.

STOCK PICKS

Graphite India | TRADE-BUY | CMP: Rs550 | SL: Rs540 | TARGETs: Rs570–Rs585

Graphite India has taken support near Rs540 and is now showing signs of a bounce. The stock has been consolidating and is now attempting to move higher with renewed buying interest. A sustained trade above Rs550 can trigger momentum toward Rs570 and Rs585 in the short term. The chart structure indicates accumulation at lower levels, and traders can look to buy around current levels with a stop loss at Rs540 for a favourable risk-reward trade.

CDSL | TRADE-BUY | CMP: Rs1,455 | SL: Rs1,430 | TARGETs: Rs1,500–Rs1,530

CDSL has been in a steady uptrend and is now trading near a key breakout zone. The stock has consistently found support near Rs1,430, and buyers are showing strength around this level. If the price holds above Rs1,455, it could move toward Rs1,500 and Rs1,530 in the near term. The setup looks healthy, and short-term indicators point to continued upside. Traders can consider entering at current levels with a stop loss at Rs1,430.

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