Index holds bearish candle on daily charts
For the traders, 53,600 would act as a sacrosanct level, above, it could move up to 54,000-54,150; however, below 53,600 the selling pressure is likely to increase
image for illustrative purpose
Mumbai: Third day in a row, the benchmark indices witnessed profit booking at higher levels. BSE Sensex was down by 281 points. Among sectors, most of the sectoral indices witnessed profit booking at higher levels. Amid all the sectoral indices, Nifty IT index corrected sharply, shed over three per cent.
Technically, on intraday charts, from last three days the index is holding lower top formation. And on daily charts, it has formed bearish candle which is broadly negative.
"We are of the view that, the short-term market structure is weak, but oversold. For the traders, now 53,600 would act as a sacrosanct level. If the index succeeds to trade above the same, then it could move up to 54,000-54,150," says an analyst.
However, below 53,600 the selling pressure is likely to increase. Below the same, the chances of hitting 53,300-53,150 would turn bright.
