Medium-term market texture remains weaker

Long bearish candle on weekly charts indicating strong possibility of further fall

Mumbai: In the just concluded week, the benchmark indices corrected sharply as BSE Sensex shed 2.46 per cent. Among sectors, all the major sectoral indices registered profit booking at higher levels, but Media index was the top looser, shed over five per cent. During the week, the Sensex breached crucial support of 64,800 and post breakdown it intensified the selling pressure. After a sharp sell off on last Friday, the benchmark indices witnessed pullback rally.

Technically, the medium-term market texture is still in to the weak side and long bearish candle on weekly charts indicating strong possibility of further weakness from the current levels.

“We are of the view that, as long as the index is trading above 63,300 level, the pullback rally is likely to continue. Above the same, the market could move till 64,400-64,700,” says Amol Athawale of Kotak Securities.

On the flip side, below 63,300 level, the selling pressure is likely to accelerate. Below the same, the market could slip till 62,900 points. Further, down side may also continue which could drag the index till 62,600 level. For Bank Nifty, the 42,400-42,300 would act as a sacrosanct support zone. Above which, it could rally till 200-day SMA (Simple Moving Average) or 43,200 on the flip side, below 42,300 level, the uptrend would be vulnerable.