Mkt may further weaken from current levels

Mumbai, Nov 06

Today, the benchmark indices experienced a volatile trading session. After a roller-coaster activity, the Sensex was down by 148 points. Among sectors, the Media, Tourism, Défense, Metal indices shed over 2 percent, whereas some intraday buying was observed in selective IT stocks.

Technically, after an early morning intraday bounce back, the market encountered resistance near 84,000 and reversed sharply. From the day’s highest point, the market corrected over 600 points. A bearish candle on daily charts and a lower top formation on intraday charts indicate further weakness from the current levels.

“We believe that the current market texture is weak, but a fresh sell-off is possible only after the dismissal of 83,100,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

Below this level, the market could slip to 82,700-82,500. On the upside, above 83,700, the market could move up to 84,000. Further upside may also continue, potentially lifting the market to 84,300.

Stock Picks

Dabur India – Buy | CMP: ₹523 | SL: ₹505 | Target: ₹550 / ₹565

Dabur India is showing steady recovery from its recent lows, supported by improving volumes and positive RSI momentum. The stock has crossed above short-term moving averages, indicating renewed buying strength. Sustaining above ₹523 could open room for a move toward ₹550 and ₹565. A stop-loss at ₹505 is recommended to manage risk effectively.

Biocon – Buy | CMP: ₹385 | SL: ₹370 | Target: ₹405 / ₹420

Biocon has formed a strong base near ₹370 and is now showing signs of a potential breakout. The stock’s RSI is trending upward, suggesting improving momentum in the pharma space. A decisive close above ₹385 can push the price toward ₹405 and ₹420. Traders may consider long positions with a stop-loss at ₹370 for risk management.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.