Charts indicate further weakness
Fresh pullback rally possible only after 52,800, above which it could move up to 53,200-53,400; below 52,800, the correction continuation formation is likely to continue
Mumbai: After a sharp selloff, the benchmark indices witnessed range-bound activity. On Wednesday, the Sensex was down by 160 points. Among Sectors, selling pressure continued in Energy and Metal stocks whereas some buying interest was seen in selective Auto stocks.
Technically, the index has formed small inside body bearish candle which indicates indecisiveness between the bulls and bears. In addition, on intraday charts, it's holding lower top formation that supports further weakness from the current levels. ¬¬¬¬However, on short-term time frame, the market is indicating oversold condition.
"We are of the view that, a fresh pullback rally possible only after 52,800 above which, it could move up to 53,200-53,400," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. On the flip side, as long as the index is trading below 52,800, the correction continuation formation is likely to continue. Below the same, the index could slip till 52,200-52,000.
