Akshay Bhagwat, representing JM Financial Services, communicated that the market is nearing a critical support level at 24,600, yet it has not been breached. Bhagwat indicated the importance of the upcoming trading sessions as they will determine if this support level holds. He noted that over the past few days, market breadth has been weak, with more than 80% of stocks in the futures and options space trading negatively. All sectoral indices are facing selling pressure at higher levels, and the Nifty index is testing the significant support area of 24,600. A failure to sustain above this level could lead to a more pronounced bearish setup.
Bhagwat remarked that if the 24,600 support holds, the market could see a choppy session between 25,200 and 24,600. However, if the support is breached, there could be a potential decline before the October series concludes.
Regarding specific stocks such as City Union Bank and Paytm, Bhagwat emphasized that Paytm’s stock is influenced by the Q2 results, which have not been well-received. He suggested that from a broader perspective, Paytm’s technical charts remain strong for those holding positions, with support around 630. He advised that short-term investors might expect a further 30-40 point downside and recommended setting a stop loss below 620.
In the realty sector, Bhagwat stated that the space has been unstable, dealing with consistent selling resistance. Most sectors have experienced a similar choppy environment recently. Among realty stocks, only a few, like Oberoi Realty, have shown resilience. Oberoi Realty has been fluctuating between the 1900 to 2000 range, but as long as the support at 1890 holds, it may see a recovery if market conditions improve.
Bhagwat advised viewers to hold off on making new investments until market stability is restored. He recommended monitoring the situation before deciding on potential buys or targeting specific sectors.
