Quote on Market Wrap by Shrikant Chouhan, Head Equity Research, Kotak Securities
Below the Quote on Market Wrap by Shrikant Chouhan, Head Equity Research, Kotak Securities
Today, the benchmark indices witnessed volatile momentum. After a rollercoaster of activity, the Nifty ended 5 points lower, while the Sensex was down by 112 points. Among sectors, Defence, Realty, and Metal indices gained over 1 percent, whereas the Capital Market index corrected sharply, shedding over 2 percent. After an early morning intraday selloff, the market found support near 22,000/72800 and bounced back sharply.
Technically, it has formed a bearish candle on the daily charts and is still holding a lower top formation on the intraday charts, which is largely negative. We believe that the current market texture is weak but oversold; hence, we could expect a quick pullback rally from the current levels. For day traders, 22,000/72800 would act as a sacrosanct support zone. As long as the market is trading above this level, the pullback formation is likely to continue.
On the upside, 22,200/73400 would be the immediate resistance zone for the bulls. If the market moves above 22,200/73300, it could rally up to 22,250–22,300/73500-73800. On the flip side, if it falls below 22,000/72800, traders may prefer to exit their long positions.
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