Market Notes

TCS is currently appearing very weak, and despite the market's stability, it continues to decline, which is not promising. The stock has formed a notably bearish pattern on the daily timeframe and is now breaking down from it. Although there is support at the 2900 level, I believe the stock will drop to 2540, where there is gap support, and it may stabilize there. However, my ultimate target is 2300. With the current stock price at 3000, reaching 2300 would indicate a significant correction. This will likely affect other IT stocks, raising concerns about the Indian market, as a large segment may face challenges soon. It's crucial that our stock investments focus more on individual stocks rather than solely on the broader market's strength.

ABB India is also exhibiting a bearish flag breakdown pattern. The stock is already trading below the 200 MA and is experiencing increasing volumes during the decline. There's a strong likelihood that the stock will break down from the current bearish pattern, as it has been underperforming even during the recent market rally. This relative weakness is concerning, and coupled with the bearish pattern, it increases the conviction for a short sell. The stock could potentially see a 10% correction from this level.

Overall, it appears that many short positions were created in the futures segment today, particularly in stocks that have been struggling recently. The significant number of shorts in various stocks in the futures segment suggests increased market pressure in the coming days. Additionally, the ongoing talks between Russia and the US are not expected to yield any major breakthroughs. The market is undoubtedly nervous, with upcoming sanctions and potential tariffs remaining a concern.

Major banks like SBI and ICICI, along with gold loan companies like Muthoot and Manappuram, saw strong buying due to positive results. However, the deteriorating breadth in financials and banks is worrisome.

The auto sector still appears strong to me, but the negative momentum in the broader markets could undermine the strength in autos and pharma. The pharma sector also faces the tariff overhang. Overall, the market might remain sideways with some negative bias.