Profit booking may continue further

The benchmark indices on Tuesday witnessed profit booking at higher levels as BSE Sensex was down by 413 points. Among sectors, almost all the major sectoral indices witnessed selling pressure at higher levels, but Media and Auto indices lost the most, both the indices shed over one per cent.

“Technically, a reversal formation and bearish candle on daily charts suggest profit booking is likely to continue in the near future. We are of view that the 62,300 level could be the key resistance level for the bulls,” says Shrikant Chauhan of Kotak Securities.

As long as the index is trading below the same, the weak sentiment is likely to continue. Below 62,300 level, the index could retest the level of 61,700 points. Further down side may also continue and it could drag the index till 61,500 points. On the flip side, above 62,300 level, the chances of hitting 62,500-62,600 would turn bright.