Mkt may further weaken from current levels

Mumbai, Sep 22

The benchmark indices continued profit booking at higher levels, with the Nifty ending 125 points lower while the Sensex was down by 466 points. Among sectors, the IT index was the top loser, shedding nearly 3 percent, whereas intraday buying was seen in selective energy and digital stocks. Technically, after a gap-down open, the market witnessed intraday recovery, but due to consistent profit booking at higher levels in the second half, it corrected sharply. A lower top on intraday charts and a bearish candle on daily charts indicate further weakness from the current levels.

“We are of the view that, as long as market is trading above 82,500 the weak sentiment is likely to continue,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

On the down side, it could slip till 82,000-81,700. On the flip side, 82,500 would act as a crucial resistance zone for day traders. If the market manages to trade above this level, it could move up to 82,800-83,000.

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

Stock Picks

SBI – Buy | CMP: ₹855 | SL: ₹830 | Target: ₹890 / ₹910

SBI is showing strong momentum after consolidating near support levels. The stock is trading well above its short-term moving averages, indicating underlying strength. RSI is pointing higher, suggesting continued bullish sentiment. Sustaining above ₹855 could drive the stock toward ₹890 and ₹910. Traders may consider fresh long positions with a stop-loss at ₹830 to manage risk effectively.

Adani Ports – Buy | CMP: ₹1,444 | SL: ₹1,400 | Target: ₹1,520 / ₹1,550

Adani Ports is witnessing steady buying interest and holding strong above its recent breakout zone. The stock is trading above both 20-day and 50-day moving averages, supported by rising volumes. RSI is also trending positively, signaling further upside. If it sustains above ₹1,444, it can move toward ₹1,520 and ₹1,550. A stop-loss at ₹1,400 is advised to protect against downside.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.