Market is largely negative
On the downside, 83,700 would act as an immediate support zone. Below this, it could slip to 83,100-82,800. Above 84,200, we could see a quick pullback up to 84,500-84,700
Market is largely negative
In the last session of the week, the benchmark indices corrected sharply. The Sensex was down by 2185 points. Among sectors, the Defence index gained 1.30 per cent, whereas India Tourism, Oil & Gas, and Energy indices shed over 5 percent.
During the week, the market slipped below the 20-day SMA (Simple Moving Average), and post-breakdown selling pressure intensified. Technically, on weekly charts, it has formed a long bearish candle and is comfortably trading below short-term averages, which is largely negative.
Amol Athawale of Kotak Securities, said: “We are of the view that as long as the market trades below the 50-day SMA or 84,900, the weak formation is likely to continue. On the downside, 83,700 would act as an immediate support zone. “Below this level, selling pressure is likely to accelerate. Further below, the market could slip to 83,100-82,800. On the upside, above 84,200, we could see a quick pullback up to 84,500-84,700.”
