Market is largely negative
The market is largely negative as investors react to global uncertainties, weak earnings, and cautious sentiment, leading to broad-based declines across key indices.
Market is largely negative
Mumbai, Jul 25
In the last week, the benchmark indices continued their weak momentum. The Sensex declined by 294 points. Among sectors, the Media and Reality indices corrected sharply; Media shed 5.88%, and Reality was down by 5.14%. However, some buying interest was seen in selective Healthcare and Digital stocks. During the week, the market once again faced resistance near 83,000 and reversed sharply.
“Technically, on weekly charts, it has formed a bearish candle, and on daily charts, it is holding a lower top formation, which is largely negative,” says Amol Athawale of Kotak Securities.
Additionally, it breached the 50-day SMA (Simple Moving Average), a crucial support zone, and is currently trading comfortably below it. We believe that as long as the market remains below 82,200, weak sentiment is likely to continue. On the downside, the correction wave may extend to 81,000-80,700.
On the upside, a move above 82,200 could change the sentiment. A bounce-back is likely to continue until 83,000 or the 20-day SMA. Further upside may also push the market up to 83,500-83,800.
Stock Picks
Indian Energy Exchange Ltd (IEX)
Buy at ₹145 | Stop‑Loss ₹138 | Target ₹160
IEX has broken above the ₹142–145 resistance zone with a pickup in volume, signaling renewed bullish interest in the energy-trading space. The stock is now trading above its 20-day and 50-day moving averages, reflecting a shift to positive momentum. The Relative Strength Index (RSI) stands at around 66, indicating growing bullish strength without entering overbought territory. Chart action displays a series of higher highs and higher lows, suggesting structural resilience. As long as IEX holds above ₹138, it may build on this strength and move toward ₹160 in the near term. Traders may consider entering on dips with ₹138 as a protective stop-loss.
Syrma SGS Technology Ltd
Buy at ₹728 | Stop‑Loss ₹690 | Target ₹820
Syrma SGS has surged past the ₹720 resistance level on robust volume, signaling fresh accumulation in the electronics-contract manufacturing segment. The stock is now well above both its 20-day and 50-day moving averages, affirming technical strength. The RSI reads near 67, reflecting healthy upward momentum with room to run. Price structure reveals higher highs and higher lows, supporting further upside. If Syrma SGS sustains above ₹690, it appears positioned for a move toward ₹820 in the near term. Traders may initiate positions on minor pullbacks, maintaining ₹690 as a key stop-loss level.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
EoM.
