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 corrected sharply, with the Nifty ends 243 points lower and the Sensex down by 857 points. Among sectors, the IT and Digital indices experienced significant declines, shed over 2 percent, while some buying interest was noted in selective FMCG and Auto stocks.
Technically, after a gap-down open, the market faced selling pressure throughout the day. A bearish candle on daily charts and correction continuation formation on intraday charts indicates further weakness from current levels. We believe that while the current market texture is weak, but it is also oversold; therefore, a quick pullback rally is a strong possibility.
For traders, the level of 22650/74900 will act as a trend decider. As long as market is trading below the same, weak sentiment is likely to continue. Below which it could slip till 22450-22400/74000-73800. Conversely, if it rises above 22650/74900, it could extend bounce back up to 22750-22800/75200-75500 .
Above views are of the author and not of the website kindly read disclaimer
