Sensex forms inside body bearish candle
The benchmark indices witnessed profit booking at higher levels, NSE Nifty ends 207 points lower, while BSE Sensex was down by 638 points.
image for illustrative purpose
Mumbai: The benchmark indices witnessed profit booking at higher levels, NSE Nifty ends 207 points lower, while BSE Sensex was down by 638 points. Among Sectors, Metal and PSU Banks corrected sharply. Despite weak market sentiment, Pharma index outperformed and rallied over 1 percent.
Technically, promising pullback rally, on last Monday the index opened with a muted note, but due to consistent profit booking at higher levels, it corrected sharply. On daily charts, it has formed inside body bearish candle and also closed below 200-day SMA (Simple Moving Average) which is broadly negative. For the traders now 57,300 would be the key resistance level.
"As long as, the index is trading below the same, the correction wave is likely to continue. Below which the index could retest 56,100-55,800 level," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the flip side, fresh pullback rally possible only after 57,300. Above which, the index could move up to 57,800.
