Mkt reacts negatively to RBI's policy review
BSE Sensex still holding lower top formation
image for illustrative purpose
Mumbai: On Wednesday, the benchmark indices registered a volatile trading session, BSE Sensex was down by 215 points. Among sectors, Media and Reality indices shed over one per cent. Whereas, despite tepid market conditions buying interest was seen in selective FMCG stocks. As a result, FMCG index rallied nearly one per cent.
Post monetary policy, the market reacted negatively and held the negative momentum throughout the day. Technically, on intraday charts, the index is still holding lower top formation and it also formed small bearish candle on daily charts which is broadly negative.
"For the traders now, as long as the index is trading below 62,600, the correction wave is likely to continue. Below the same, the index could slip till 62,000-61,800," says Shrikant Chouhan, head (equity research-retail), Kotak Securities.
On the flip side, above 62,600 the index could move up to 63,000-63,200. The current market texture is non directional hence level based trading would be ideal strategy for the day traders.
