Mkt may weaken further from current levels

Mumbai, Sep 04

Today, the benchmark indices witnessed profit booking at higher levels. The Sensex was up by 150 points.

Among sectors, the Defense index lost the most, shed over 1.70 per cent, whereas the Auto index gained nearly 1 per cent. Technically, after a gap-up opening, the market has been consistently witnessing selling pressure at higher levels.

On daily charts, it has formed a bearish candle, which indicates further weakness from the current levels.

“We are of the view that the short-term market outlook remains positive; however, a fresh uptrend rally is possible only after crossing the 81,000 level,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

Above this, the market could move up to 81,500. Further upside may also continue, potentially lifting the index up to 81,800. On the downside, 80,500 and 80,300 are key support zones for day traders. If the index falls below 80,300, the uptrend could become vulnerable.

Stock Picks

SBIN – Buy | CMP: ₹810 | SL: ₹790 | Target: ₹835 / ₹850

SBIN is sustaining above its immediate support at ₹790, reflecting strong buying interest. Price action shows higher lows formation, while RSI remains bullish, confirming momentum strength. A move above ₹815 could extend gains toward ₹835–850. The overall structure indicates continuation of the uptrend, making SBIN attractive for short-term traders with defined risk levels.

ONGC – Buy | CMP: ₹236 | SL: ₹228 | Target: ₹245 / ₹250

ONGC is holding firm near its support zone at ₹228, with accumulation visible on charts. Sustaining above ₹236 can push the stock toward ₹245–250. Volumes are improving and RSI signals positive momentum, suggesting further upside potential. The risk–reward setup remains favorable, with the trend biased toward continuation of the recent bullish movement.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.