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

Benchmark indices witnessed profit booking at higher levels, with Nifty closing 182 points down, while Sensex was down 729 points. Sectorally, almost all major sectoral indices registered intraday selling pressure at higher levels, but the media index declined the most, shedding 2.40 per cent.

Technically, after a muted opening, the market continued to face selling pressure at higher levels. From the highest points of the day, the market corrected over 285/950 points. Additionally, it has formed a bearish candle on the daily chart, which supports further weakness from the current levels. We believe, as long as the market is trading below 23,500/77400, the weak sentiment is likely to continue. On the downside, it may retest 23,400-23,330/77000-76800 levels. On the other hand, if it moves above 23,500/77400, the sentiment may change, and the market may bounce back to 23700-23800/78000-78300. Contra traders can take long positions near 23,330/76800 with a strict stop loss at 23,300/76650 on a closing basis.

The Bank Nifty closed below the 51,300 mark, which is negative in the short term.  It is advisable to take a contra call of taking a long position between 50800 and 50600 levels.  Keep a stop loss at 50400 for the same.  A close below 50400 would be negative.

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