“So, yes, from the morning lows we have bounced back a bit and this has been a pattern since last week where a big gap is followed by an intraday bounce. But overall, the trend remains negative and the market is gradually going down. And we expect this volatility to continue and so we should avoid breakout bets.”
He added, “On the upside, if we look at 24,200 to 24,300, that was a major support zone and it’s broken, so we expect more lows in the near term. So avoid aggressive longs as of now. On the downside, if we look, 23,500 is the next key support. The retracement was a key level, 21,700, and for this gold is coming back around 23,500, so the next key level will be around 23,500, but until we see a clear reversal, one should avoid aggressive positions.
Bhosli also shared specific stock insights amid a volatile market. “If we look, there is volatility and we see opportunities on both sides. The car space is under a lot of pressure, and from there, TVS Cars has seen a fresh breakdown. On the daily chart, there is a break of the ascending triangle, and after a long period, it breaks below the 89 EMA, so we expect the weakness to extend into the TV in the near term. 3,730 as a key resistance point and keeping it as a stop we expect Let TVS Motors fall to 3,430 levels.
He also talked about the possibilities in other sectors. “Some counters are seeing some relative strength. The banking space is under pressure, but the IT space is showing some relative strength. From here, we like LTIMindtree. Last year, the stock was trading around 4,200 in March and reached 6,000. LTIMindtree is back around the same level. Since this March, we expect a loss of around an ounce.” 4,180, we expect a move towards 4,700 levels.
On PSU banks, Bhosli suggested a cautious approach. “We are seeing a fresh break in PSU Banks. On the daily chart of PSU Bank Index, we can see a bearish island shift. We expect PSU Bank Index to extend its move to 8,300. Till now we will have a wait and see approach. When it comes to 8,300, we will try to pick some good bankers like Bankara, Baroda and Bank Union as we can Bankara, Banka, Banka, Banka, banka, banka, suggest avoiding positions as further weakness is expected in the near term.
Analysts advise investors to remain cautious and avoid aggressive positions while keeping an eye on key support levels as the market moves through high volatility.
