Market is largely negative

Mumbai, Aug 28

The benchmark indices continued to face selling pressure at higher levels. The Sensex was down by 713 points.

Among sectors, the Capital Market Index lost the most, shedding over 2 per cent, whereas despite the weak market sentiment, some buying was observed in selective Consumer stocks.

Technically, after a muted open, the market corrected sharply. On daily charts, it has formed a bearish candle, while on intraday charts, it is showing a lower top formation, which is largely negative.

“We believe that the short-term market outlook is weak, but since it is oversold, a quick pullback rally from the current levels cannot be ruled out,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

For day traders, 80,600 would be a key level; as long as the market remains below this, the weak sentiment is likely to continue. On the lower side, the market could slip to 79,900-79,700.

On the flip side, if the market moves above 80,600, the pullback could extend up to the 20-day SMA (Simple Moving Average) or 81,000. Further upside may also continue, potentially lifting the market up to 81,300.

Stock Picks

GNG Electronics | Buy | CMP: ₹340 | SL: ₹328 | Target: ₹360 / ₹372

GNG Electronics has witnessed strong accumulation near its recent support zone of ₹328. The stock is holding above key short-term moving averages with improving volumes. RSI is turning upward, suggesting bullish momentum. Sustaining above ₹340 can open the door for further upside towards ₹360 and ₹372 in the near term.

Tata Motors | Buy | CMP: ₹675 | SL: ₹660 | Target: ₹700 / ₹715

Tata Motors is showing consolidation after a steady uptrend and is maintaining strength above crucial support levels. Volumes remain healthy, and momentum oscillators are in the bullish zone. A sustained move above ₹675 could trigger fresh buying interest, paving the way for targets of ₹700 and ₹715.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.