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

Today, the benchmark indices witnessed profit booking at higher levels. The Nifty ends 174 points lower, while the Sensex was down by 636 points. Among sectors, the Private Bank index lost the most, shedding 1.25 percent, whereas despite the weak market sentiment, the Reality and Defense indices outperformed, rallying over 1 percent. Technically, after a positive open, the market slipped below the 20-day SMA (Simple Moving Average) or 24,700/81300, and thereafter, selling pressure intensified. On daily charts, a long bearish candle has formed, and on intraday charts, a lower top formation is holding, which is largely negative.

 We believe that the intraday market texture is weak, but a fresh sell-off is possible only if the level of 24,450/80500 is breached. Below this, the index could decline to 24,320–24,300/80100-80000. On the upside, if the index moves above 24,600/81000, a quick pullback rally towards the 20-day SMA or 24,700/81300 could occur. Further upside may also continue, potentially lifting the market up to 24,760/81500.

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