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

The benchmark indices continued  profit booking at higher levels, with the Nifty ends 162 points lower and the Sensex down by 528 points. Among sectors, the Realty, Oil and Gas, indices shed over 2 percent, while selective FMCG stocks registered buying interest at lower levels. Technically, after a muted market open, there was consistent selling pressure at higher levels, resulting in a bearish candle on the daily charts and a lower top formation on the intraday charts, indicating further weakness from the current levels.

We believe that the current market texture is weak but oversold, thus a strong possibility of a pullback rally from the current levels cannot be ruled out. For traders now, 23650/78000 will be the key level to watch; below this level, the market could continue its weak formation till 23400-23375/77300-77200. Conversely, if it rises above 23650/78000, it could bounce back to 23750-23800/78300-78500. Short-term traders should remain cautious and be very selective, as there is a risk of getting trapped at lower levels.

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