Market is largely negative

Mumbai, Aug 29

In the last week, the benchmark indices witnessed selling pressure at higher levels. The Nifty ended 1.8 percent lower, while the Sensex declined by 1500 points. Among sectors, the Capital Market Index lost the most, declining by 7.5 percent, whereas some buying was seen in selective FMCG stocks, resulting in the FMCG Index gaining 0.67 percent. Technically, on weekly charts, it has formed a long bearish candle and also a lower top formation, which is largely negative.

“We are of the view that the market's short-term outlook remains weak, but a fresh selloff is possible only if the level of 79,700 is breached,” says Amol Athawale of Kotak Securities.

On the other hand, above 80,500, the pullback rally could continue up to the 20-day SMA (Simple Moving Average) or 81,000 and 81,300.

On the downside, if the market falls below 79,700, it could slip to the 200-day SMA or around 78,900. Further downside may also continue, which could drag the market down to 78,400.

Stock Picks

Denta Water – Buy | CMP: ₹398.00 | SL: ₹383.00 | Target: ₹450.00

Denta Water is showing consistent accumulation and managing to stay above the ₹395 support zone. Momentum indicators reflect ongoing strength, keeping the bias positive. Entries around current levels with a stop loss at ₹383 look favorable, as the stock carries potential to approach ₹450. Strong demand and active volumes indicate limited downside risk for positional trades.

Inox Green – Buy | CMP: ₹147 | SL: ₹142.00 | Target: ₹165.00

Inox Green is consolidating in a constructive pattern, with firm support established near ₹142. Sustaining above ₹150 could invite fresh momentum and push prices toward ₹165. The structure remains bullish, and any dips should be viewed as opportunities to accumulate. Overall sentiment stays supportive for near-term upside.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.