Market is largely negative

Mumbai, Dec 02

Today, the benchmark indices continued profit booking at higher levels. The Sensex was down by 504 points. Among sectors, buying interest was seen in selective auto and paint stocks, whereas the capital market index lost the most, shedding over 1 percent.

Technically, after a gap-down open, the market has been consistently facing selling pressure at higher levels. On intraday charts, it has formed a lower top, and on daily charts, it has created a bearish candle, which is largely negative.

“We are of the view that, intraday, the market texture is weak, but a fresh selloff is possible only if the index dismisses the 85,000 level,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

If the market manages to trade above this level, it could bounce back to 85,500-85,800. On the flip side, below 85,000, selling pressure is likely to accelerate. If it falls below this level, the market could slip to 84,500-84,300

Stock Picks

BPCL – Buy | CMP: ₹358.75 | SL: ₹345 | Target: ₹372 / ₹382

BPCL is forming a steady higher-low structure with strong support near ₹345. The stock is holding above its short-term averages, indicating improving trend strength. RSI is turning upward, suggesting a momentum pickup. A move above ₹362 can push the stock toward ₹372 and ₹382. Maintain SL at ₹345.

Asian Paints – Buy | CMP: ₹2,954.40 | SL: ₹2,890 | Target: ₹3,020 / ₹3,080

Asian Paints is attempting to break out from a narrow consolidation band. The stock has solid support near ₹2,890 and is showing early signs of strength on momentum indicators. A breakout above ₹2,970 may trigger an up-move toward ₹3,020 and ₹3,080. SL at ₹2,890

(Source_Riyank Arora Technical Analyst at Mehta Equities)