Market is largely negative

The benchmark indices corrected sharply. The Sensex was down by 324 points. Among sectors, the Reality Index lost the most, shed over 2 percent, whereas despite weak market sentiment, some buying interest was seen in selective FMCG stocks.

Technically, after an early morning intraday selloff, the market took support near 82900 and trimmed some losses. However, the short-term market texture remains weak. On daily charts, it has formed a bearish candle, and on intraday charts, it is holding a weak formation, which is largely negative.

Shrikant Chouhan, Head Equity Research, Kotak Securities, said: “We are of the view that the current market texture is weak, but a fresh selloff is possible only if 82900 is dismissed. Below this level, the market could slip to 82600-82500. “On the flip side, above 83500, a pullback move could extend till 83800-84000. The intraday market texture is volatile and non-directional; hence, level-based trading would be the ideal strategy for day traders.”