“So, yes, from the morning lows we are seeing some bounce back and this has been the pattern since last week where a huge gap down is followed by intraday bounce. But overall, the trend remains negative and gradually the market is moving lower. And we expect this volatility to continue and hence one should avoid complacent bets,” said Rajesh Bhosale, market strategist from Angel One.
He added, “On the higher side, if we see 24,200 to 24,300, that was a major support zone and that has been breached, so we expect further lower levels in the near term. So, avoid aggressive longs as of now. On the downside, if we see, 23,500 is the next key support, that is a key golden retracement. Last year there was a rally from the levels of around 21,700, and the golden retracement for that comes around 23,500. So, the next key level would be around 23,500. But as of now, until we see a clear reversal, one should avoid aggressive positions.”
Bhosale also shared stock-specific insights amid the volatile market. “If we see, there is volatility and we are seeing opportunities on both sides. Auto space is under tremendous pressure, and from that space, TVS Motor has seen a fresh breakdown. On the daily chart, there is an ascending triangle breakdown, and after a long time, it is slipping below 89 EMA. So, we expect the weakness can extend in the near term. One can have a bearish bet on TVS Motor considering 3,730 as a key resistance point and keeping that as a stop loss. We expect TVS Motor can slip towards the levels of 3,430.”
He highlighted potential opportunities in other sectors as well. “Some relative strength is visible in some counters. Banking space is under pressure, but IT space is somewhat showing relative strength. From that space, we are liking LTIMindtree. Last year, the stock was trading around 4,200 in March and rallied towards 6,000. LTIMindtree is again around the same levels this March. We expect a bounce back since indicators are oversold. With a stop loss of around 4,180, we are expecting a move towards 4,700 levels.”
Regarding PSU banks, Bhosale suggested a cautious approach. “We are seeing fresh breakdown in the PSU banks. On the daily chart of the PSU bank index, we can see a bearish island reversal formation. We expect the PSU bank index can extend its move towards 8,300. As of now, we will have a wait and watch approach. When it comes to 8,300, we will try to pick some good counters such as Bank of Baroda, Canara Bank, and Union Bank. But for now, we suggest avoiding positions as further weakness is expected in the near term.”
Analysts advise investors to maintain caution and avoid aggressive positions while keeping an eye on key support levels as the market navigates through heightened volatility.
