Weak market sentiment may continue

Mumbai, Jul 17

Today, the benchmark indices witnessed profit booking at higher levels. The Sensex was down by 375 points.

Among sectors, the Reality index was the top gainer, rallied 1.23 per cent, whereas the IT index lost the most, shed 1.50 per cent.

Technically, after a muted open, the market has been consistently facing selling pressure at higher levels. The Sensex has formed a bearish candle on daily charts and a lower top formation on intraday charts, which is largely negative.

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

On the downside, the 50-day SMA (Simple Moving Average) at 82,000 would be the immediate support level. Below 82,000, the chances of hitting 81,600-81,500 would increase.

On the upside, a break above 82,500 could lead the market to retest the levels of 82,800. A successful breakout above 82,800 could push the market up to 83,000-83,300.

Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Markets largely remained in the negative zone amid uncertainty over the impending announcement of the India-US tariff outcome, as investors resorted to selling in banking, IT and oil & gas shares that led the downfall in key benchmarks.”

Once the deal is announced and if it suits the interests of both the countries, there will be a relief in the markets and we may see short-term spurt, else the sluggish to pessimist mood could continue. Also, the ongoing earnings season will have a bearing on the markets, and investors would take positions based on how the results pan out going ahead.

Stock Picks

Q Power

Buy at ₹865 | Stop‑Loss ₹820 | Target ₹960

Q Power has recently broken above the ₹850–860 resistance levels on rising volume, indicating renewed interest from investors. The stock is now trading above both its 20‑day and 50‑day moving averages, confirming a bullish technical trend. The Relative Strength Index (RSI) sits around 66, showing healthy momentum without being overbought. Chart patterns display a series of higher highs and higher lows, reinforcing the uptrend. As long as the stock holds above ₹820, a move toward ₹960 looks practical in the near term. Traders may consider entering on dips, with a stop‑loss at ₹820 to manage risk.

Yatra Online

Buy at ₹91.71 | Stop‑Loss ₹86.00 | Target ₹110.00

Yatra Online has cleared its recent resistance around ₹90 on increasing volumes, signaling a potential rebound in the travel-tech segment. The stock is trending above its short-term moving averages, and the RSI stands near 65, indicating upward momentum with some room to climb. The price structure shows emerging higher highs, suggesting the start of a bullish phase. Provided it sustains above ₹86.00, Yatra can look to move toward ₹110.00 in the near term. Traders may initiate positions on mild pullbacks, with ₹86.00 acting as a key stop-loss level.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.