Market is largely negative

Mumbai, Dec 17

Today, the benchmark indices experienced selling pressure at higher levels. The Sensex declined by 120 points. Among sectors, the Nifty PSU Bank index rallied 1.20 per cent, whereas the Media index shed 1.80 per cent.

Technically, after a muted open, the market faced resistance near 84,900 and reversed sharply. On daily charts, it has formed a bearish candle, and on intraday charts, it is maintaining a lower top formation, which is largely negative.

“We are of the view that the intraday market sentiment is weak, but a fresh selloff is possible only if the level of 84,300 is broken below,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

If that happens, the market could retest the levels of 84,000-83,800. On the flip side, if the market moves above 84,900, the sentiment could improve. Above this level, the market could rise to 85,200-85,400.

Currently, the intraday market texture is non-directional; therefore, level-based trading would be the ideal strategy for day traders.

Stock Picks

Jindal Steel – Buy | CMP: ₹1,001.80 | SL: ₹970 | Target: ₹1,045 / ₹1,080

Jindal Steel is undergoing a healthy pullback after a strong up-move and is holding near its key support zone around ₹970. The broader trend remains bullish with higher-timeframe strength intact. RSI is cooling off from overbought levels, indicating room for the next leg up. A move above ₹1,010 can revive momentum toward ₹1,045 and ₹1,080. Maintain SL at ₹970.

Manappuram Finance – Buy | CMP: ₹286.45 | SL: ₹275 | Target: ₹300 / ₹312

Manappuram is showing steady strength with the stock respecting its support near ₹275. Price action suggests accumulation on dips, while the overall structure remains positive. RSI is stable in the bullish zone, supporting further upside. A breakout above ₹290 can push the stock toward ₹300 and ₹312. Traders may hold longs with SL at ₹275.

(Source_Riyank Arora Technical Analyst at Mehta Equities)