Weak sentiment is likely to continue

Mumbai, July 03

Today, the benchmark indices witnessed a volatile session. The

Sensex was down by 170 points. Among sectors, Capital Market and Media indices rallied nearly 1.5 per cent, whereas intraday profit booking was seen in India Tourism and PSU Banks stocks.

Technically, after an early morning intraday rally, the market faced resistance near 83,800 and reversed sharply. From the day's highest levels, 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.

However, the short-term market outlook remains positive. For day traders, 83,500 are key levels to watch. As long as the market trades below these levels, weak sentiment is likely to continue. On the downside, the market could slip to 83,000-82,800.

“On the upside, above 83,500, we could see an intraday bounce up to 83,800. A successful breakout of the 83,800 resistance zone could push the market towards 84,000,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities

For the bulls, the immediate breakout zones are 83,900. A successful breakout above these levels could push the market toward 84,200–84,400. On the flip side, a dismissal of 83,500 could accelerate selling pressure. Below these levels, the market could retest 83,200–83,000.

Stock Picks

Tata Motors Ltd (TATAMOTORS)

Buy at ₹690 | Stop‑Loss ₹660 | Target ₹760

Tata Motors has surpassed the ₹680 resistance zone with solid volume, signaling renewed bullish interest. The stock is trading comfortably above its 20-day and 50-day moving averages, confirming a healthy uptrend. The Relative Strength Index (RSI) is around 67, indicating strengthening momentum without being overbought. Chart structure shows consistent higher highs and higher lows, reinforcing positive bias. As long as Tata Motors holds above ₹660, the outlook remains constructive. A move toward ₹760 appears feasible in the near term. Traders may consider entering on dips, with ₹660 as a prudent stop-loss level.

Sigachi Industries Ltd

Buy at ₹41.75 | Stop‑Loss ₹39.50 | Target ₹48.00

Sigachi Industries has broken above the ₹41 resistance level with rising volumes, suggesting fresh buying interest. The stock is now trading above both its 20-day and 50-day moving averages, supporting the emerging positive trend. The RSI sits near 66, reflecting firm bullish momentum while still offering enough room for further upside. With a pattern of higher highs and higher lows forming, the structure favors continuation. If Sigachi maintains above ₹39.50, the share price may extend toward ₹48. Traders might consider accumulating on small pullbacks, protecting downside with a ₹39.50 stop-loss.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

EoM.