Wait for a fresh selloff

Mumbai: Profit booking continues at higher levels, and the Sensex was down by 376 points. Among sectors, the Pharma and Healthcare indices outperformed, both rallying over 1.5 per cent, whereas the Oil and Gas Index lost the most, shedding 1.80 per cent. Technically, after an early morning intraday rally, the market registered profit booking again at higher levels.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We are of the view that the intraday market formation is still on the weaker side, but a fresh selloff is possible only after the breach of 84,800. “Below this level, the market could slip to 84,500-84,350. On the flip side, 85,300 would be the immediate resistance zone for the bulls. Above this, the market could bounce back up to 85,500-85,700.”

STOCK PICKS

CSB Bank | TRADE – BUY | CMP: Rs566.15 | SL: Rs540 | TARGETs: Rs600-Rs630

CSB Bank has delivered a strong breakout with heavy volume participation, indicating fresh accumulation. The stock has moved decisively above its earlier resistance zone and is trading in a higher-high, higher-low structure. Momentum indicators are firmly bullish, suggesting continuation of the uptrend. Any dip toward Rs550–555 may attract buying interest. A sustained move above Rs575 can push the stock toward Rs600 and Rs630. Maintain SL at Rs540.

Gandhar Oil | TRADE – BUY | CMP: Rs169.10 | SL: Rs160 | TARGETs: Rs178-Rs185

Gandhar Oil is showing strong follow-through buying after breaking out of a consolidation range. The stock is holding above its short-term averages, reflecting strength in price action. RSI remains in the bullish zone, indicating momentum continuation. A move above Rs172 can accelerate the upside toward Rs178 and Rs185. Traders may hold long positions with a stop-loss at Rs160.

(Source: Riyank Arora, technical analyst at Mehta Equities)