According to Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher, the Indian stock market bias has weakened after the crash across all four sessions last week. The Nifty 50 index ended down by 3.10%, while the Sensex fell nearly 2000 points during the truncated trading week. As reported by LiveMint, the Consumer and Auto indices lost the most, with Consumer stocks correcting 6.15% and Auto stocks falling 5.85%. The market consistently faced selling pressure at higher levels, forming a long bearish candle on weekly charts and making lower highs and lower lows on intraday charts.
Parekh identified crucial support levels for the Nifty 50 index, stating that the 50-stock index witnessed another day of free fall with heavy selling pressure to almost touch the previous low made near the 22,180 zone. According to the technical analysis, the index finally managed to close just above the 22,400 zone with the overall bias and sentiment shattered. As reported by LiveMint, the crucial support near the 22,200 zone and major and important level near the 21,800 zone need to be sustained, failing which the overall trend would turn weak and can invite further intensified selling pressure.
Despite the challenging market conditions, Parekh has updated her stock recommendations for the current market environment. CG Power is now recommended as a buy at ₹260 with a target of ₹290 and stop loss at ₹260. Graphite India is suggested as a buy at ₹1,900 with a target of ₹2,300 and stop loss at ₹1,900. Bectors Food is recommended as a buy at ₹385 with a target of ₹420 and stop loss at ₹375. As reported by Mint Markets, these updated recommendations reflect the current market dynamics and technical analysis for the coming weeks.
Parekh has now recommended three additional stocks for the current market environment. Balrampur Chini is recommended as a buy at ₹708 with a target of ₹745 and stop loss at ₹685. Bluestone is suggested as a buy at ₹830 with a target of ₹880 and stop loss at ₹800. Kotak Mahindra Bank is recommended as a buy at ₹440 with a target of ₹470 and stop loss at ₹428. These new recommendations reflect her confidence in these specific stocks' potential to outperform in the current challenging market environment.
According to Parekh's analysis, while some revival cannot be ruled out, the market needs to sustain above the 23,000 zone for any meaningful recovery. As reported by LiveMint, a decisive break below the 21,800 support level may further intensify selling pressure, indicating that the current market weakness is likely to persist until key resistance levels are reclaimed. The updated recommendations reflect her confidence in these specific stocks' potential to outperform in the current challenging market environment.
