Sensex forms bearish candle, signaling weakness
For traders, index likely to continue correction till 54800 if it trades below 55,400
image for illustrative purpose
Mumbai: The benchmark indices witnessed profit booking at higher levels. As result, Sensex was down 567 points. Among sectors, realty, media, IT and FMCG stocks witnessed correction sharply, down over 1.5 per cent whereas, buying interest was seen in selective energy stocks.
Technically, on Tuesday, the Sensex broke the important support level of 55,300 and succeeded to close below the same which is largely negative. In addition, it also formed bearish candle that also support short term weakness.
"We are of the view that, the market structure is weak but mildly oversold. For the traders, as long as the index is trading below 55,400 the short term texture remains weak, below which the correction wave is likely to continue till 54,800 further down side may also continue which could drag the index up to 54,500," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. On the other side, above 55,400 chance of hitting 54,700-54,850 would turn bright.
