Mkt may turn weaker from current level

Mumbai: The benchmark indices on Monday witnessed a profit booking at higher levels. BSE Sensex was down by 523 points. Among sectors, PSU Bank and Media indices corrected sharply, shed over four per cent whereas despite weak market conditions buying were seen in selective IT stocks.

Technically, after a muted opening, the market consistently facing selling pressure at higher level. On intraday charts index is still holding lower top formation and on daily charts. It has formed a bearish candle which indicating further weakness from the current levels.

“For the traders now, the 71700 would act as a trend decider level, below which the market could slip till 70900-70700 range,” says Shrikant Chouhan, head (equity research), Kotak Securities.

On the flip side, above 71,700 level, the sentiment could change. Above 71,700 level, the chances of hitting 71,900-72000 range would turn bright.

Prashanth Tapse, senior VP (research), Mehta Equities, says: “Due to lack of fresh positive triggers, investors are using the opportunity to redeem their investments, which fuelled broad-based selling pressure. With valuations getting stretched and no major change in fundamentals, mid and small-cap stocks were the worst hit as they had rallied sharply ahead of the fundamentals last year.”

Also, FIIs have been selling in recent months, which is making investors nervous and prompting them to steadily trim their holdings.