Market is largely negative
The market is witnessing a largely negative trend driven by weak global cues, investor caution, and sectoral declines. Get the latest insights on market sentiment.
Market is largely negative
Mumbai, Jul 24
Today, the benchmark indices experienced profit booking at higher levels. The Sensex was down by 542 points. Among sectors, the IT index lost the most, correcting 2.20 per cent, whereas despite weak market sentiment, the PSU Bank index rallied over 1.40 per cent.
Technically, the market once again faced resistance near 82,800 and reversed sharply. On daily charts, a bearish candle has formed, and on intraday charts, a lower top formation is evident, which is largely negative.
“We are of the view that, although the intraday market texture appears weak, a fresh selloff is possible only after the levels of 82,000 are breached”, says Shrikant Chouhan, Head - Equity Research, Kotak Securities.
Below these levels, the market could retest 81,700-81,500. Conversely, if the market moves above 83,200, a technical bounce back to 82,800 could occur. Further upside may continue, potentially lifting the market to 83,000.
Stock Picks
Reliance Industries Ltd (RELIANCE)
Buy at ₹1,404 | Stop‑Loss ₹1,350 | Target ₹1,520
Reliance has carved out a solid upmove by clearing the ₹1,390–1,400 resistance band on increased volume, signaling strong bullish interest. The stock now trades comfortably above its 20‑day and 50‑day moving averages, confirming sustained momentum. The Relative Strength Index (RSI) is around 67, indicating healthy momentum with room to run. Its structure shows strong support formations with higher highs and higher lows. As long as Reliance holds above ₹1,350, it is well-positioned to move toward ₹1,520 in the near term. Traders may consider entering on dips, with ₹1,350 as a prudent stop-loss.
Tata Consultancy Services Ltd (TCS)
Buy at ₹3,152 | Stop‑Loss ₹3,050 | Target ₹3,400
TCS has recently broken out above a consolidation range of ₹3,110–3,140 with strong volumes, signaling fresh accumulation in the IT sector. The stock is firmly above both its 20‑day and 50‑day moving averages, reflecting a constructive technical setup. The RSI stands near 66, suggesting bullish momentum while staying below overbought levels. The chart displays a pattern of higher highs and higher lows, supporting continuation of the uptrend. Provided TCS sustains above ₹3,050, the stock could target ₹3,400 in the near term. Traders may look to accumulate on dips, using ₹3,050 as a key stop-loss.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
EoM.
