Pullback formation is likely to continue

Mumbai, Jul 31

Today, the benchmark indices witnessed a volatile trading session from the lower levels, the Sensex was down by 296 points.

Among Sectors, FMCG Index outperformed, rallied 1.4 per cent whereas Oil and Gas, Capital market and Pharma indices shed over 1 per cent.

Technically, after a gap down open one more time market took the support near 80,600 and bounced back sharply. From the day lowest point market rallied over 300 points. However, it failed to close above 81,600 levels. Nevertheless, on intraday charts it has formed higher bottom formation which is largely positive.

For the day traders now, 80,800 and 80,600 would act as a key support zones.

“As long as market is trading above the same, the pullback formation is likely to continue,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities

On the higher side market could move up to 81,900 and 82,200. On the other side, below 80,600 the sentiment could change. Below the same, traders may prefer to exit out from the trading long positions.

Prashanth Tapse, Senior VP (Research), Mehta Equities says, “ .”

Stock Picks

SPML Infra

Buy | CMP: ₹308 | SL: ₹295 | Target: ₹340 / ₹360

Analysis: SPML Infra has given a strong breakout above ₹300 with rising volumes, signaling renewed buying interest. The stock is trading well above its short-term moving averages, indicating sustained strength. RSI is also pointing higher, confirming bullish momentum without being overbought. The price structure is forming higher highs and higher lows, suggesting potential for continued upside. As long as it stays above ₹295, it can move toward ₹340–₹360 in the short term. Traders can consider buying with a stop-loss at ₹295 to manage risk effectively.

State Bank of India (SBIN)

Buy | CMP: ₹797 | SL: ₹780 | Target: ₹835 / ₹850

Analysis: SBIN has maintained strong momentum, holding firmly above ₹780 support. The stock is trading above its 20-day and 50-day moving averages, which reflects bullish strength. RSI remains in the positive zone, indicating healthy momentum. A move above ₹800 can lead to targets of ₹835 and ₹850 in the near term. The overall price trend remains positive with steady buying interest from higher levels. Traders may consider accumulating SBIN with a stop-loss at ₹780 to safeguard against volatility.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.