Market is largely negative

Mumbai, Aug 06

Today, the benchmark indices continued with weak momentum. The Sensex was down by 166 points.

Among sectors, most of the leading sectoral indices registered intraday profit booking at higher levels, but the Pharma Index lost the most, shedding 2 per cent.

Technically, the market is still holding a lower top and, on daily charts, has created a small bearish candle, which is largely negative.

“We believe that the short-term market outlook is weak but oversold,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities

On the downside, 80,300 continues to be a promising support zone, while 81,000 would act as a crucial resistance area for the bulls. Above 81,000, the pullback is likely to continue up to 81,500-81,600.

Conversely, a decline below 80,300 could push the market down to 80,000-79,700.

Stock Picks

GMDC Ltd

Buy | CMP: ₹396 | SL: ₹380 | Target: ₹430 / ₹450

Analysis: GMDC has regained momentum after bouncing from support near ₹380. The stock is trading above its short-term moving averages, indicating renewed strength. RSI is trending upward, suggesting building bullish momentum. Sustaining above ₹396 could drive it toward ₹430–₹450 in the near term. Positive price structure and improving volumes support this outlook. Traders can consider fresh buying opportunities with a stop-loss at ₹380 to manage downside risk.

Ola Electric

Buy | CMP: ₹40.5 | SL: ₹38 | Target: ₹46 / ₹48

Analysis: Ola Electric has stabilized near ₹40 and is showing signs of accumulation. The stock is holding above key support levels and is trading with improving volume trends. RSI indicates steady recovery potential. A sustained move above ₹40.5 may lead to an upside toward ₹46–₹48. The stock’s base formation supports this bullish view. Traders can enter at current levels with a strict stop-loss at ₹38 for a favorable risk-reward trade.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.