Medium-term texture still on positive side

Mumbai: On Tuesday, the benchmark indices witnessed intraday profit booking at higher levels, BSE Sensex was down by 199 points. Among sectors, Reality, IT and Pharma indices shed over one per cent whereas Metal index rallied nearly one per cent.

Technically, after muted opening the market registered a fresh all time high of 73,427pts, but due to profit booking at higher levels it failed to close above 73,400 level. However, the medium-term texture of the market is still in to the positive side.

“For the traders now, the 73,000 level would act as a key support level. Below the same, the selling pressure is likely to accelerate,” says Shrikant Chouhan, head (equity research), Kotak Securities. Below which, the market could retest the level of 72,750-72,500. On the other side, as long as it is trading above 73,000 the chances of hitting 73,400/73,600 would turn bright.

Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Key indices scaled record highs, but failed to capitalise as lack of cues due to closure of US markets on Monday saw investors book profit in IT, telecom, realty and power stocks, which halted the recent upsurge.” Weak Asian and European market cues coupled with a sharp fall in rupee against the dollar also dented the sentiment, which prompted investors to trim their equity exposure.