Possible relief rally on the cards

On Wednesday, after a gap-down opening the market witnessed an intraday recovery from the lower levels as BSE Sensex closed at 65,226 points. Among sectors, PSU Banks corrected sharply whereas intraday buying were seen in selective IT stocks. Technically, after a gap-down opening, the market took the support near 64,875 and reversed.

On daily charts, the index has formed Dragonfly Doji candlestick formation, which indicating strong possibility relief rally from the current levels.

“We are of the view that, the short-term market texture is weak but due to temporary oversold conditions, we could see one quick pullback rally from the current levels”, says Shrikant Chouhan of Kotak Securities.

For the day traders now, the 65,000 would be the key support level to watch out, above which the market could continue the pullback move till 65,500-65,600 points. On the flip side, below 65,000 level, the selling pressure is likely to accelerate. Below the same, the index could slip till 64,875-64,700 points.