Market is largely negative
The market remains largely negative as investors react to global economic concerns, weak earnings, and rising uncertainties, leading to a bearish sentiment across key indices.
Market is largely negative
Mumbai, Jul 18
In the last week, the benchmark indices witnessed profit booking at higher levels. The Sensex was down by 742 points.
Among sectors, Media and Reality indices outperformed which gained 3.77 and 3.68 per cent, whereas profit booking was seen in Defence and Private Bank indices. The Defence index was down 4 percent, and the Private Bank index corrected over 2 per cent.
Technically, on daily and intraday charts, the market is holding lower top patterns, and on weekly charts, it has formed a bearish candle, which is largely negative.
“We believe that the short-term market texture is weak, but a fresh sell-off is possible only after the dismissal of 81,600,” says Amol Athawale of Kotak Securities.
Below this level, the market is likely to retest the levels of 80,700-80,400.
On the flip side, the 50-day SMA (Simple Moving Average) or 82,100 and 82,300 would act as crucial resistance zones for short-term traders. If the market manages to trade above 82,300, it could bounce back to the 20-day SMA or 83,000. Further upside potential could lift the index up to 83,400-83,600.
Prashanth Tapse, Senior VP (Research), Mehta Equities says, “ .”
Stock Picks
Reliance Industries
Buy at ₹1,475 | Stop Loss: ₹1,430 | Target: ₹1,600 & ₹1,650
Reliance has broken out of its ₹1,450–1,470 consolidation with strong volumes, signaling renewed buying interest. The stock trades above its 20‑ and 50‑day moving averages, with RSI around 67, reflecting solid momentum. A sustained move above ₹1,475 may open the way toward ₹1,600, followed by ₹1,650, backed by bullish chart patterns showing higher highs and higher lows. Traders may consider initiating positions on dips, keeping a tight stop loss at ₹1,430 to manage downside risk.
Mahindra & Mahindra (M&M)
Buy at ₹3,192 | Stop Loss: ₹3,100 | Target: ₹3,390 & ₹3,450
M&M has reclaimed the critical ₹3,150–3,180 zone, breaking higher on improving volume—indicating firm upward bias. The stock is comfortably above its 20‑day and 50‑day moving averages, reinforcing the bullish setup. The RSI reads around 66, signaling momentum with room ahead. The price displays a healthy pattern of higher highs and lows. A sustained hold above ₹3,192 may propel the stock toward ₹3,390, and potentially ₹3,450. Traders may look to accumulate on dips while adhering to a stop‑loss at ₹3,100.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
EoM.
