Sensex forms long bearish candle
The benchmark indices on Wednesday corrected sharply as BSE Sensex was down by 186 points
image for illustrative purpose
Mumbai: The benchmark indices on Wednesday corrected sharply as BSE Sensex was down by 186 points. Among sectors, Media and PSU Banks corrected sharply, shed over three per cent whereas despite weak market sentiments Pharma and healthcare stocks outperformed, as a result Pharma index gained over two per cent.
Technically, one more time the index took the resistance near 62,000 and corrected sharply, it also formed long bearish candle on daily charts which is broadly negative.
"We are of the view that, as long as the index is trading below 61,500 the weak formation is likely to continue below the same the index could slip till 60,800-60,600," says Shrikant Chouhan, head of Equity Research (Retail), Kotak Securities.
On the flip side, fresh pullback rally is possible only after dismissal of 61,500. Above which, the index could move up to 61,800-62,000. The current market texture is volatile and non-directional. Hence, level-based trading would be the ideal strategy for the short-term traders.
