Market may weaken further from current level

The benchmark indices corrected sharply. The Sensex was down by 1066 points. Among sectors, all the major sectoral indices traded in the red, but the Reality index lost the most, shedding over 5 per cent.

Technically, after a weak open, the market breached the crucial support of 83,000, and post-breakdown, selling pressure intensified. A long bearish candle on the daily charts and a lower top formation on intraday charts indicate further weakness from the current levels.

“We are of the view that, although the intraday market texture is weak, it is oversold; hence, one quick pullback rally from the lower levels cannot be ruled out,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

For traders, as long as the market is trading below 82,300, a weak sentiment is likely to continue. On the lower side, the market could slip to 82,000-81,700. On the flip side, above 82,300, a pullback move could take the market to 82,500-82,800.