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

Today, the benchmark indices continued profit booking at higher levels, the Nifty shed 324  points while the Sensex was down by  984  points. Among Sectors, all the major sectoral indices all the major sectoral indices witnessed profit booking at higher levels but Reality index lost the most, shed over 2.25 percent. Technically, after weak open  throughout the day market registered  selling pressure at higher levels. In addition, bearish candle on daily charts indicating further weakness from the current levels. We are of the view that, the current market texture is weak but oversold hence; we could expect one quick intraday pullback rally from the current levels.

For the traders now, 200 day SMA (Simple Moving Average) or 23500/77500 would act as a sacrosanct support zone. Above the same, we could expect one technical bounce back till 23800-23850/78300-78500. On the flip side, fresh selloff possible only after dismissal of 23500/77500. Below which, it  could slip till 23380-23350/77200-77000

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