Market may further weaken from current levels

Mumbai: The benchmark indices corrected sharply. The Sensex was down by 1,342 points. Among sectors, almost all the major sectoral indices registered profit booking at higher levels, but the Auto index lost the most, shedding over 3 per cent.

Technically, after a muted open, the market slipped below 77,500, and post-breakdown, selling pressure intensified. On daily charts, it has formed a long bearish candle and is also holding a lower top formation, indicating further weakness from the current levels.

“For day traders, as long as the market is trading below 77,500, a weak sentiment is likely to continue,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

On the lower side, the market may retest the level of 76,300. Further downside could continue, dragging the market till 76,000-75,800. On the flip side, above 77,500, a pullback move could extend up to 78,000.