Short-term texture still on positive side

Mumbai: The benchmark indices witnessed profit booking at higher levels as BSE Sensex was down by 802 points. Among sectors, Consumer durable and Energy indices shed over 1.5 per cent whereas PSU Bank index gained nearly one per cent.

Technically, after a muted opening, the market consistently facing selling pressure at higher levels. From the day highest level, Nifty/ Sensex corrected over 1,000 points. In addition, on daily charts, it has formed bearish candle that is largely negative.

“We are of the view that, short-term texture of the market is still in to the positive side, but fresh uptrend rally possible only after dismissal of 7,500 above the same the market could retest the level of 71,800-72,000,” says Shrikant Chouhan, head (equity research), Kotak Securities.

On the flip side, below 71,500 the index could slip till 70,900-70,800.

Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Selling intensified towards the fag end as investors further slashed their positions in key stocks ahead of the Budget, while weakness in several Asian indices also contributed to the overall fall.” With just one day left for the Budget, investors want to play it safe although there would not be any big-bang announcement by the government in this budget. Focus would rather shift to US Fed policy, but indications are that it may maintain status quo on interest rates, which could unsettle investors further.