Immediate resistance at 63,500 level

On Thursday, the benchmark indices witnessed profit booking at higher levels, BSE Sensex was down by 284 points. Almost all the major sectoral indices registered profit booking at higher levels, but PSU Bank index lost the most, shed over 1.7 per cent.

“Technically, on intraday charts, the index has formed double top formation and also formed bearish candle on daily charts, which is largely negative,” says Shrikant Chauhan of Kotak Securities.

The short-term texture of the market indicating weak sentiment is likely to continue in the near future. For the day traders now, 63,500pts would be the immediate resistance level.

Below which, the market could retest the level of 63,000-62,900. On the flip side, fresh uptrend rally possible only after dismissal of 63,500. Post 63,500 breakout, the index is likely to rally till 63,700-63,800 level.

Vinod Nair, head (Research), Geojit Financial Services, said: “The domestic market is currently witnessing increased volatility as it hovers around its historical peaks. This heightened volatility has also affected mid- and small-cap stocks, which have shown resilience.”

Moreover, the weak global indicators have had an impact on the domestic market, as they experienced declines following concerns of potential rate hikes, prompted by comments from the Fed chair regarding the fight against inflation, he added.

Amidst current market sentiments, investors at Dalal Street engaged in profit-booking following the hawkish comments made by Fed Chair Jerome Powell.

Prashanth Tapse, senior vice-president (research), Mehta Equities says: “While media and metals sectors remained resilient, the majority of sectoral indices closed in the red, with PSU Banks experiencing the most significant impact. Thursday’s market pause indicates a potential decline towards key support levels.”