Market may weaken further from current levels

Mumbai, Nov 04

Today, the benchmark indices witnessed selling pressure. The Sensex was down by 519 points. Among sectors, almost all the major sectoral indices registered selling pressure, but the Defence, Capital Market and Metal indices shed nearly 1.50 per cent. Technically, on intraday charts, the market is holding a lower top formation, and on daily charts, it has formed a bearish candle, which indicates further weakness from the current levels.

“We are of the view that, as long as the market is trading below 83,750, weak sentiment is likely to continue,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

On the downside, the market could slip to 83,300. Further weakness may also persist, which could drag the market to 83,000-82,800.

On the flip side, above 83,750, the market is likely to bounce back to 84,100 and 84,400.

The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders.

Stock Picks

Rubicon Research – Buy | CMP: ₹653 | SL: ₹620 | Target: ₹700 / ₹740

Rubicon Research is witnessing strong buying momentum after consolidating near ₹630 levels. The stock has broken above key resistance with rising volumes, signaling renewed investor interest. RSI is trending positively, indicating potential continuation of the uptrend. Sustaining above ₹653 could open the way toward ₹700 and ₹740. Traders may maintain a stop-loss at ₹620 for risk management.

Chennai Petroleum – Buy | CMP: ₹982 | SL: ₹950 | Target: ₹1,050 / ₹1,100

Chennai Petroleum continues to display robust strength on the charts, supported by higher crude refining margins and strong price action. The stock is trading above all major moving averages, confirming bullish momentum. RSI remains elevated, hinting at sustained upside potential. A move above ₹982 could drive the next rally toward ₹1,050 and ₹1,100. Stop-loss at ₹950 is advisable.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.