Weak texture is likely to continue
73,000 would act as key support, below which, the market could slip till 72,100-72,000. On the flip side, above 73,000 the market could bounce back till 73,400-73,500
image for illustrative purpose
Mumbai: On Thursday, the benchmark indices witnessed a volatile trading session, after a roller coaster activity the Sensex down by 455. Among Sectors, Media index outperformed, rallied over 1 percent whereas FMCG and Financial stocks witnessed profit booking at higher levels.
After an early morning intraday bounce back the Sensex took the resistance near 20 day SMA (Simple Moving Average) and reversed sharply. In addition, on daily charts, market has formed bearish candle and on intraday charts, it is still holding lower top formation, which is largely negative.
Shrikant Chouhan, Head Equity Research, Kotak Securities, said: “We are of the view that, as long as the index is trading below 73,000 the weak texture is likely to continue. Below which, the market could slip till 72,100-72,000.” On the flip side, above 73,000 the sentiment could change. Above 73,000, it could bounce back till 73,400-73,500.
The current market texture is volatile hence; level based trading would be the ideal strategy for the day traders. Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Markets witnessed frenzied selling towards the closing stages in a highly volatile trading session, as concerns over fading rate cut hopes and persisting FII fund exodus from local stocks dampened investors’ sentiment.”
Even as the Indian economy has been resilient and managed to dodge global worries, worries of stubborn inflation, rising instances of geo-political tensions and delay in interest rate cut has fuelled profit-taking over the past few weeks.
CMP (Current Market Price); SL (Stop Loss)/ All prices in Rs
