Market may weaken further

Mumbai: The benchmark indices witnessed a sharp sell-off. The Sensex was down by 2,497 points. Among sectors, all the major sectoral indices traded in the red, but Auto, Realty, and Financial indices lost the most, shedding over 3 per cent.

Technically, on the backdrop of weak global sentiment, our market opened with a gap down, and post-gap down, it breached the crucial support zone of 74,500. Following the breakdown, selling pressure intensified.

“We are of the view that the current market texture is weak, with a bearish candle on the daily charts and a lower top formation on intraday charts, indicating further weakness from the current levels,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

For day traders, as long as it trades below 74,500, weak sentiment is likely to continue. On the downside, the market could slip to 73,500-73,000. On the flip side, above 74,500, the pullback move could extend up to 75,000-75,200. The current market texture is highly volatile, and volatility is likely to persist in the near future.