Market is largely negative
Below 75,000, it may retest levels of 73,600-73,000; Above 75,000, it may rebound up to 75,600-76,100
Market is largely negative
Mumbai: In the last session of the week, the benchmark indices corrected sharply. The Sensex declined by over 4,300 points. Among sectors, almost all major sectoral indices witnessed selling pressure at higher levels, but the Auto index lost the most, shedding over 10.50 percent.
During the week, the market breached the crucial support levels of 79,000, and post-breakdown, selling pressure intensified. Technically, on daily charts, the market has formed lower highs and lower lows, and on weekly charts, it formed a long bearish candle, which is largely negative.
“We believe that as long as the market is trading below 75,000, a weak formation is likely to continue,” says Amol Athawale of Kotak Securities.
On the downside, the market could continue its correction wave until 73,600. Further downward movement may also continue, potentially dragging the index to 73,000. On the other side, above 75,000, the pullback move could extend until 75,600-76,100.
