Market may weaken further

Mumbai, Oct 31

In the last week, the benchmark indices witnessed profit booking at higher levels. The Sensex was down by 273 points.

Among sectors, the PSU Bank index gained the most, rallying 4.66 per cent, whereas the Capital Market index was the top loser, shedding 1.83 per cent.

During the week, the market once again faced resistance near 85,300 and reversed sharply. Technically, on daily and intraday charts, it has formed a double top-like pattern, and on weekly charts, a shooting star like formation has appeared, indicating further weakness.

However, the short-term market outlook remains positive.

“We believe that the 83,900-83,700 zone will act as a crucial support level for traders, while 85,000 and 85,300 could serve as key resistance areas for the bulls,” says Amol Athawale of Kotak Securities.

A successful breakout above 85,300 could push the market toward 85,800-86,100. Conversely, if the market falls below 83,700, sentiment could turn negative, potentially slipping to 83,300-83,100.

Stock Picks

Union Bank – Buy | CMP: ₹148.67 | SL: ₹142 | Target: ₹156 / ₹162

Union Bank continues to show strong bullish momentum, supported by rising volumes and improving price structure. The stock remains above its short-term moving averages, indicating sustained buying interest. A decisive move above ₹150 could push it toward ₹156 and ₹162. Traders can maintain a stop-loss at ₹142 for risk management.

BEL – Buy | CMP: ₹426.10 | SL: ₹410 | Target: ₹445 / ₹460

BEL is sustaining its bullish trajectory with consistent volume accumulation and robust price action. The stock has maintained higher highs and higher lows on the chart, confirming continued strength. Momentum indicators such as RSI remain positive, suggesting further upside toward ₹445 and ₹460. A stop-loss at ₹410 is advised.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.