IGI Logo

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

Benchmark indices experienced a sharp correction, with the Nifty closing down by 261 points and the Sensex falling by 870 points. All major sectoral indices faced profit booking during the day, with the defence and auto sectors declining the most, each by 2 percent.

From a technical perspective, after a positive market opening, selling pressure was consistently observed at higher levels. The daily chart has formed a long bearish candle, and the intraday chart indicates a continuation of the correction, which is largely negative. We believe that as long as the market remains below 24850/81700, the correction wave is likely to persist. On the downside, the market may retest the levels of 24550-24500/80800-80500. On the upside, market sentiment may shift if it rises above 24850/81700. If it does surpass this level, there is a greater potential for it to reach 25000/82200 and 25100/82500. The strategy should be to trade short around 24850; however, for that, we need to keep a stop loss at 24950. Between 24600 and 24500, the market is having a major support zone as well as the support of the 20-day SMA. Take a contra bet on buying around 24500 with a stop loss at 24400. 

The Bank Nifty failed to surpass the 56100 level, which is negative. The strategy should be to reduce long positions at each resistance that exists at 55000 and 55400 levels. Support exists at 54400, 54100 and at 53800.

Above views are of the author and not of the website kindly read disclaimer