Short-term Structure Remains Positive

Mumbai: On Tuesday, the benchmark indices witnessed a profit booking at higher levels. BSE Sensex was down by 1,281 points. Among sectors, the Defence index outperformed, rallied 4.10 per cent, whereas the IT index lost the most, shed nearly 2.5 per cent.

Technically, after a muted open, the market consistently faced selling pressure at higher levels. On daily charts, it has formed a bearish candle, which supports temporary weakness. However, the short-term texture of the market is still in to the positive side.

Shrikant Chouhan, head (equity research), said: “For traders now, the 81,000 and 80,800 would act as key support zones. If the market succeeds in trading above these levels, it could retest the level of 81,800-82,000.” On the flip side, below 24,450/80800, the uptrend would become vulnerable. If the market falls below this level, traders may prefer to exit their long positions.

Vaibhav Vidwani, research analyst, Bonanza, said: “Key heavyweights like Infosys dropped over three per cent, dragging the IT index down by more than 2.42 per cent, while financials and FMCG also saw notable declines. The downside was primarily triggered by profit-taking and cautious investor sentiment following the sharp run-up, coupled with concerns over mixed corporate earnings results and global cues.”

Defensive sectors like PSU banks and pharma showed resilience, with some stocks such as Bharat Electronics and Hindustan Aeronautics gaining 3-7 per cent, reflecting ongoing interest in defence amid geopolitical developments. Going forward, investors will closely watch upcoming inflation data and quarterly earnings for further direction, with expectations of volatility but underlying bullishness intact.

STOCK PICKS

Canara Bank | TRADE-BUY | CMP: Rs104.78 | SL: Rs101 | TARGETs: Rs110–Rs114

Canara Bank has taken strong support near Rs101 and is now showing signs of recovery. The stock is trading near a breakout zone and could pick up momentum if it crosses Rs106. The price structure looks positive, with buyers gradually stepping in. If it sustains above Rs105, a move toward Rs110 and Rs114 is likely. Traders can look to buy around current levels or on small dips, with a stop loss at Rs101 to manage risk.

Yes Bank | TRADE-BUY | CMP: Rs20.87 | SL: Rs19.80 | TARGETs: Rs22.20–Rs23

Yes Bank is showing early signs of strength after holding above key support near Rs19.80. The stock has formed a base and is now attempting to break out from a narrow range. A sustained move above Rs21 could trigger further upside toward Rs22.20 and Rs23 in the short term. Momentum is gradually improving, and traders can consider buying now with a stop loss at Rs19.80 for a favorable risk-reward setup.

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