IGI Logo

Below the Inputs on Morning Market by Shrikant Chouhan, Head Equity Research, Kotak Securities

The benchmark indices witnessed profit booking at higher levels. The Nifty ended 147 points lower, while the Sensex was down by 559 points. Among sectors, the IT index lost the most, shedding over 5 percent, whereas, despite weak market sentiment, intraday buying was seen in selective financial stocks.

Technically, after a weak opening, the market consistently faced selling pressure at higher levels. A bearish candle on the daily charts and weak intraday formations indicate further weakness. However, the short-term texture of the market is still positive. We believe that the 50-day SMA (Simple Moving Average) at 25,750/83500 would act as a key support zone for traders. If the market manages to trade above this level, it could bounce back to 25,900-25,950/84000-84200. On the flip side, if it falls below 25,750/83500, it could slip to 25,600-25500/82900-82600. Buy Nifty between 25600-25500 and keep a stop loss at 25400.

Above views are of the author and not of the website kindly read disclaimer