Market Wrap by Shrikant Chouhan, Head of Equity Research, Kotak Securities
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Below the Quote on Market Wrap by Shrikant Chouhan, Head of Equity Research, Kotak Securities
Today the benchmark indices corrected sharply. Nifty shed 547 points while the Sensex was down by 1769 points. Among Sectors, all the major sectoral indices were traded in to the red but Reality index lost the most, shed 4.60 percent. Technically, after gap down open market breached the important support of 20-day SMA (Simple Moving Average) and post breakdown the selling pressure intensified. A bearish candle on daily charts and correction continuation formation on intraday charts indicating further weakness from the current levels.
We are of the view that, as long as market is trading below 25365/82800 the weak sentiment is likely to continue. On the down side, it could slip till 25150-25025/82200-82000 or 5o day SMA. On the other side, one quick technical pullback is likely if the market succeeds to trade above22365/82800. Above the same, it could bounce back till 25475-25500/83100-83300. The current market texture is volatile hence; level based trading would be the ideal strategy for the day traders.
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