Market is largely negative

Mumbai: In the last session of the week, the benchmark indices experienced volatile activity. After a roller coaster momentum, the Sensex closed 30 points lower. Among sectors, Auto and Digital indices gained 2 per cent, whereas Defence and Oil & Gas indices lost the most, shedding nearly 2 per cent.

During the week, the market bounced back sharply but faced profit booking at higher levels, leading to a sharp correction again. Technically, on daily and intraday charts, the market is still forming lower tops and trading well below short-term moving averages, which is largely negative.

“We are of the view that the short-term market outlook remains weak, and as long as it continues to trade below 75,500, the weak sentiment is likely to persist,” says Amol Athawale of Kotak Securities.

On the downside, 74,400 would act as an immediate support zone. Below this level, selling pressure is expected to accelerate, and the index could slip to 73,500. Further downside risk may continue, potentially dragging the index to 72,900.

On the upside, a move above 75,500 would be crucial. The next resistance zone for traders would be around 76,000. If this level is surpassed, a bounce back could continue up to 76,900-77,500.