A quick correction possible
For now, 79,700 would be the sacrosanct support level, above which market could move up to 80,500-80,750; However, below 79,700, we could see one quick correction up to 79,300-79,000
image for illustrative purpose
Mumbai: On Thursday, the benchmark index Sensex was down by 109 points. Among sectors, Oil Gas index outperformed, rallied over two per cent, whereas Metal index shed over one per cent. Technically, on the backdrop of weak global sentiments our market opened weak, but post gap down open it bounced back sharply.
From the day lowest point market recovered over 600 points. “For the day traders now, 20-day SMA (Simple Moving Average) or 79,700 would be the sacrosanct support level. Above the same, the market could move up to 80,500-80,750,” says Shrikant Chouhan, head (equity research), Kotak Securities.
However, below 79,700 level, the sentiment could change below the same, we could see one quick correction up to 79,300-79,000. “Overnight slump in US equities caused a major slump in domestic markets in early trades due to heavy profit-taking in banking, IT, metals and realty stocks. However, markets recouped most of its losses towards the end with Sensex managing to close above the crucial 80k-mark amid buying in oil & gas and automobile stocks, indicating that investors are willing to bet on good fundamental sectoral stocks despite rising concerns of the stretched valuations of the Indian markets,” says Prashanth Tapse, senior V-P (research), Mehta Equities.
