Larger texture of mkt still on down side direction
Above 54,150 the pullback formation is likely to continue up to 55,000-55,300, below 54,150 fresh round of selling is possible
image for illustrative purpose
Mumbai: The benchmark indices continued the weak momentum, BSE Sensex was down by 343 points. Among sectors, energy, media and PSU banks shed over two per cent, while some buying interest was seen in selective IT stocks. Technically, the short-term structure of the market is still in to the weak side but due to oversold conditions strong possibility of quick pullback rally is not ruled out. On intraday charts, the index showed some recovery from the day lowest level. From the low point of the day Sensex recover over 550 points.
"We are of the view that, the larger texture of the market is still in to the down side but if the index sustains above 54,150 then the pullback formation is likely to continue up to 55,000-55,300," says Shrikant Chouhan, head (equity research-retail), Kotak Securities. On the flip side, below 54,150 fresh round of selling is possible. Below which, the index could touch the level of 54,000-53,900.
"Indian indices opened on the back of the negative note and weak global factors. Sensex was down by 364.91 points or 0.67 per cent at 54470.67. During the day after a weak start, benchmark indices erased it's some of the intraday losses, Rupee hits record low and extended the losses and touched a record low of 77.42 per dollar," says Harsh Parekh, Technical Analyst, Bonanza Portfolio. Globally Hang Seng index is under pressure after wall-street slides, Oil prices lower despite pledge G7 to ban Russia imports, Dollar index trades at near 20-year high, US 10 year Yield touches 3.14 per cent first time after since 2018.
