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

Today, the benchmark indices witnessed a recovery from lower levels, with the Nifty ends  19  points lower while the Sensex was down by 51  points. Among sectors, the Oil and Gas index outperformed, gaining over 1.5 percent, whereas profit booking was observed in healthcare and pharma stocks.

Technically, after an early morning intraday correction, the market found support near 23,500/77500 and bounced back sharply, recovered over 175/600 points from its lowest level of the day. We believe that as long as the market is trading above 23,500/77500, the pullback formation is likely to continue. On the upside, it could bounce back to around 23,800/78500.

Further gains may occur, potentially lifting the index to the 200-day Simple Moving Average (SMA) or at 23,925/78900. However, below 23500/77500 sentiment could change below the same, traders may prefer to exit out from the trading long positions.

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