Further fall likely
As long as the market is trading below 73,000 level, the weak sentiment is likely to continue; Above 73,000pts, the sentiment could change
image for illustrative purpose
Mumbai: On Wednesday, the benchmark indices witnessed profit booking at higher levels as BSE Sensex was down by 434 points. Among sectors, Media index witnessed a sharp correction, shed over 4.5 per cent whereas Reality index outperformed rallied 1.90 per cent. Technically, after a muted opening, market consistently facing selling pressure at higher levels.
On daily charts, it has formed bearish candle, which supports further weakness from the current levels. For day traders now, the 73,000 would act as a crucial resistance zone. As long as the market is trading below the same, the weak sentiment is likely to continue. Below which, the index could retest the level of 72,300-72,200. On the flip side, above 73,000 the sentiment could change. Above 73,000, the index could move up till 73,300-73,500.
“On daily charts, it has formed bearish candle, which supports further weakness from the current levels. For day traders now, 73,000 would act as a crucial resistance zone,” says Shrikant Chouhan, head (equity research), Kotak Securities.
Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Investors turned cautious ahead of the outcome of the minutes of the US Fed’s last meeting as profit-taking in IT, oil & gas, power and metals saw markets snap its 6-session winning streak.”
The minutes may indicate that the US Fed would wait for inflation to moderate further before giving up its Hawkish stance on interest rates
