Sensex may continue weak momentum below 60,850
Market benchmark may slip till 60,000-59,800, on the flipside, dismissal of 60,850 could push it up to 61,000-61,200
image for illustrative purpose
Mumbai: On the backdrop of weak global cues, the benchmark indices corrected sharply. BSE Sensex was down by 420 points. Among sectors, all the major sectoral indices were traded in the red but Auto index lost the most, shed nearly two per cent.
Technically, after a reversal formation, on Thursday the index continued the weak momentum. Post weak opening, the index held the weak momentum throughout the day. "We are of the view that, as long as the index is trading below 60,850, the weakness is likely to continue, below which the index could slip till 60,000-59,800," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the flip side, dismissal of 60,850 could push the index up to 61,000-61,200. Contra trades can take a contra bet near 59,800 with strict stop loss support at 17,800/59,600.
