82K may act as a key support zone for traders

Mumbai, July 14

Today, the benchmark indices continued to face selling pressure at higher levels. The Sensex was down by 247 points.

Among sectors, despite weak sentiment, the Reality and Capital Market indices outperformed, both rallying over 1.35 per cent. Meanwhile, the IT index was the top loser, shedding 1.14 per cent.

Technically, after a muted opening, the market experienced selling pressure at higher levels. However, following a long correction, it eventually took a halt near the 82,000 mark.

“We believe that the market has completed one leg of correction, and the 50-day SMA (Simple Moving Average) at 82,000 is likely to act as a key support zone for traders,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

Above this level, a technical bounce back up to the 20-day SMA, or approximately 82,500–82,800, could be expected.

On the flip side, below the 50-day SMA, or 82,000, selling pressure is likely to accelerate. In that scenario, the market could see levels around 81,600–81,500.

Stock Picks

Reliance Industries (RELIANCE)

Buy at ₹1,483 | Stop‑Loss ₹1,440 | Target ₹1,600

Reliance has broken out above the ₹1,470–1,480 resistance zone on strong volume, signaling renewed buying interest. The stock is trading well above its 20‑day and 50‑day moving averages, reflecting sustained bullish momentum. The Relative Strength Index (RSI) stands near 67, indicating healthy momentum without entering overbought levels. The price action shows a pattern of higher highs and higher lows, confirming the positive trend. As long as Reliance holds above ₹1,440, it could move toward ₹1,600 in the near term. Traders may consider entering on dips, placing a stop‑loss at ₹1,440 to manage downside risk.

CarTrade Tech

Buy at ₹1,987 | Stop‑Loss ₹1,900 | Target ₹2,200

CarTrade has surpassed the ₹1,950–1,970 resistance band on increased volume, indicating fresh buying momentum in the auto‑tech sector. The stock is comfortably above its short‑ and mid‑term moving averages, reinforcing a bullish setup. The RSI is around 66, reflecting solid upward momentum with room for further gains. A well-defined sequence of higher highs and higher lows is visible on the chart. Provided CarTrade sustains above ₹1,900, it is positioned to rally toward ₹2,200 in the short term. Traders may look to accumulate on small pullbacks with a stop‑loss at ₹1,900 for downside protection.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.