Short-Term Mkt Texture In Bearish Mode

Mumbai: On Monday, after a weak open market that witnessed intraday recovery, BSE Sensex was down by 58 points. Among sectors, Healthcare and Pharma indices gained over one per cent, whereas the Defence index lost the most, showing nearly three per cent. Technically, after an early morning intraday correction, the market took support near 75,300 and bounced back sharply. However, the short-term texture of the market is still on the downside.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that as long as the market is trading above 75,500, the pullback formation is likely to continue.” On the higher side, it could move up till 76,200. Further upside may also continue, which could lift the market till 76,500. On the flip side, below 75,500 level, the sentiment could change. Below the same, the market could slip till 75,300-75,000.

Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Markets eked out modest gains in late recovery in a highly volatile trade, but most importantly it managed to halt the 8-session losing streak. Positive Asian and European indices aided sentiment, while gains in select banking, oil & gas, metals and power stocks helped local benchmarks recover from their early lows.”