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Below the Quote on Market Wrap by Shrikant Chouhan, Head Equity Research, Kotak Securities

On the backdrop of weak global sentiments, the benchmark indices corrected sharply. The nifty ends 662 points lower while Sensex was down by 2222 points. Among Sectors, all the major sectoral indices were traded in the red but Metal and Reality indices corrected sharply. Metal down 5 and Reality shed 4.70 percent.

Technically, after a long time Nifty/ Sensex closed below 20 day SMA (Simple Moving Average) which is largely negative. It also formed long bearish candle on daily charts, which supports further weakness from the current levels.

We are of the view that the current market texture is weak and volatile but due to temporary oversold conditions, we could expect one intraday pullback rally. For the day traders now, 24000/78500 would be the immediate reference point. Above the same, we could expect intraday pullback up to 24150-24250/79000-79300. On the flip side, below 24000/78500 the selling pressure is likely accelerate. Below the same, it could retest the level of 23900/78300. Further down side may also continue which could drag the index till 23800/78000.

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