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Benchmark indices continued to see profit-booking at higher levels, with the Nifty closing 125 points lower and the Sensex down 466 points. Among sectors, the IT index was the biggest loser, falling nearly 3 percent, while select energy and digital stocks witnessed intraday buying.
Technically, after a gap-down opening, the market saw an intraday recovery, but in the second half profit-booking continued at higher levels led to a sharp decline. Lower tops on the intraday chart and bearish candles on the daily chart indicate further weakness from current levels. 
We believe that as long as the market trades above 25300/82500, weak sentiment is likely to persist. On the downside, it could fall to 25150-25050/82000-81700. On the other hand, 25300/82500 would act as a key resistance area for day traders. If the market manages to trade above this level, it could move towards 25,400–25,425/82800–83000.

Current market conditions are volatile; therefore, level-based trading would be the ideal strategy for day traders.

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