Market is largely negative

In the last session of the week, the benchmark indices corrected sharply. The Sensex was down by 2030 points. Among sectors, all the indices are in the negative territory. During the week, the market slipped below the 200-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.

Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We are of the view that as long as the market trades below the 100-day SMA or 83,000, the weak formation is likely to continue.

“On the downside, 81,100 would act as an immediate support zone. Below this level, selling pressure is likely to accelerate. Further below, the market could slip to 80,500-80,000. On the upside, above 82,000, we could see a quick pullback up to 82,500-83,000.”