Indicators signal further weakness
For traders, below 54,200 the short term texture is weak; on the flip side, if the index succeeds to trade above 54,200 then it could touch the level of 54,500-54,600
image for illustrative purpose
Mumbai: The benchmark indices witnessed profit booking at higher levels, BSE Sensex was down by 508 points. Among Sectors, Auto, IT, FMCG and Metal indices registered profit booking at higher levels whereas some buying was seen in selective Energy stocks.
Technically, on daily charts the index has formed small bearish candle and it also formed lower high formation on intraday charts which supports further weakness from the current levels. "For the traders now, below 54,200 the short term texture is weak," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Below which, the index could retest the level of 53,700-53,500. On the flip side, if the index succeeds to trade above 54,200 then it could touch the level of 54,500-54,600.
