Market may weaken further

The benchmark indices continued profit booking at higher levels, with the Nifty ending 46 points lower and the Sensex down by 32 points. Among sectors, the IT index was the top gainer, rallying 0.69 percent, while the PSU Bank index lost the most, shedding over 3 percent. Technically, after a weak open, the market slipped below 26,000/85200. However, it took support near the 20-day SMA (Simple Moving Average) and trimmed some losses in the second half. On intraday charts, it is holding a lower top pattern, indicating further weakness.

“We are of the view that the 20-day SMA or 84,800 would act as a crucial support zone for day traders,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

If the market slips below 84,800, it could retest levels of 84,600-84,400. On the upside, above 85,200, the pullback could extend up to 85,500-85,700. The intraday market texture is volatile; hence, level-based trading would be an ideal strategy for day traders.

Stock Picks

CEAT Ltd – Buy | CMP: ₹3,982.70 | SL: ₹3,880 | Target: ₹4,080 / ₹4,150

CEAT continues its strong upward momentum with a solid breakout from its recent consolidation. The stock is comfortably holding above ₹3,880 support, signalling sustained strength. RSI is in a bullish zone, confirming trend continuation. A move above ₹4,020 can drive the stock toward ₹4,080 and ₹4,150. SL at ₹3,880.

JK Tyre – Buy | CMP: ₹464.50 | SL: ₹448 | Target: ₹478 / ₹490

JK Tyre remains in a strong trend, forming higher highs with strong volume support. The stock has reclaimed all short-term moving averages, showing firm buying interest. RSI is rising, indicating momentum expansion. A push above ₹468 can take it toward ₹478 and ₹490. Keep SL at ₹448.

(Source_Riyank Arora Technical Analyst at Mehta Equities)