Further weakness possible from current levels
Markets indicate that further weakness is possible from current levels, as investors remain cautious amid volatility, global cues, and economic uncertainties.
Further weakness possible from current levels
Mumbai, Sep 26
In the last week, the benchmark indices corrected sharply. The Nifty ended 2.65 percent lower, while the Sensex was down by 2200 points. Among sectors, almost all the major sectoral indices registered profit booking at higher levels, but the IT and Realty indices lost the most, with the IT Index down by 7.73% and the Realty sector shedding nearly 6 percent. During the week, the market slipped below the 20 and 50-day SMA (Simple Moving Average), and it also breached the crucial 81,800 support zone, which is largely negative.
Technically, on weekly charts, it has formed a long bearish candle. On intraday charts, it is holding a lower top formation, which supports further weakness from the current levels.
“We believe that the short-term market trend is weak, but due to temporary oversold conditions, we could see a pullback rally from the current levels,” says Amol Athawale of Kotak Securities.
For traders, 81,200 would act as a key level to watch. Below this, the correction wave is likely to continue.
On the downside, the market could retest the levels of 80,300. Further declines may also occur, potentially dragging the index down to 79,800, 79,600. Conversely, above 81,200, a pullback formation could continue up to 81,800-82,200.
Stock Picks
SBI Card – Buy | CMP: ₹873 | SL: ₹850 | Target: ₹950 / ₹1,000
SBI Card is consolidating near support levels and showing signs of fresh buying interest. The stock is trading above short-term moving averages, while RSI points toward improving momentum. Sustaining above ₹873 could trigger a rally toward ₹950 and ₹1,000. Traders may consider buying at current levels with a stop-loss at ₹850 to protect against volatility, as the overall structure remains positive for further upside.
NUVAMA – Buy | CMP: ₹6,115 | SL: ₹5,900 | Target: ₹6,600 / ₹7,000
NUVAMA is sustaining its strong momentum, backed by healthy volumes and a bullish price structure. The stock has maintained higher highs, supported by positive technical indicators such as RSI, which suggests continued strength. Holding above ₹6,115 can drive a rally toward ₹6,600 and ₹7,000 in the short term. Traders can accumulate on dips with a stop-loss at ₹5,900 to manage risk effectively while aiming for higher gains.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
EoM.
