Correction wave is likely to continue in near future

Mumbai: The benchmark indices continued profit booking at higher levels. The Sensex was down by 829 points.

Among sectors, the Auto Index lost the most, shedding over 3 per cent, whereas despite weak market momentum, the Energy index outperformed and rallied 1.85 per cent.

Technically, after a gap-down open, the market trimmed some losses but again corrected sharply due to profit booking at higher levels.

On intraday charts, the market is forming a lower top, which suggests that the correction wave is likely to continue in the near future.

“For day traders, 76700 would act as a trend decider level,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities. Below this, the market could slip to 75700-75300.

On the flip side, above 76700, a pullback move could extend to 77000-77500. The intraday market texture is volatile and non-directional; hence, level-based trading would be the ideal strategy for traders.