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

Today the benchmark indices witnessed a sharp selloff, the Nifty ends 257 points lower while the Sensex was down by 790 points. Among Sectors, almost all the major sectoral indices witnessed profit booking at higher levels but PSU Banks and Auto indices lost the most shed nearly 2 percent. Technically, on daily charts, it has formed long bearish candle and on intraday charts, it is holding lower top formation, which is largely negative.

We are of the view that, as long as market is trading below 24000/79000 the weak texture is likely to continue. Below the same, the correction wave could continue till 23800/78500. Further down side may also continue which could drag the Nifty/ Sensex till 24700/78200. On the flip side, dismissal of 24000/79000 could change the sentiment. Above 24000/79000 it could bounce back till 24100-24125/79300-79500.

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