Pullback Formation May Continue

Mumbai: On Wednesday, the benchmark indices witnessed a recovery from lower levels. BSE Sensex was up by 567 points. Among sectors, the IT index gained over two per cent, whereas the Realty index corrected sharply shed over 4.5 per cent. Technically, after the intraday correction, the market found support near 75,850 and bounced back sharply. However, the short-term trend of the market remains weak.

Shrikant Chauhan of Kotak Securities, said: “For day traders, the 75,850 would act as a crucial support zone. If the index stays above this level, the pullback formation is likely to continue.” On the higher side, the market could bounce back to the range of 76,700-76,900. Conversely, if it falls below 75,850 level, the sentiment could change below the same it could decline to 75,600-75,500.