Market may weaken further from current levels

Mumbai: The benchmark indices corrected sharply. The Sensex was down by 522 points. Among sectors, almost all the major sectoral indices witnessed intraday profit booking at higher levels, but the Reality Index lost the most, shedding 1.50 per cent.

Technically, after a gap-down open, the entire day saw market selling pressure at higher levels. On daily charts, it has formed a bearish candle, indicating further weakness from the current levels.

Shrikant Chauhan, Kotak Securities, said: “We are of the view that, although the intraday market texture is weak, a fresh selloff is possible only after the dismissal of 84300. Below this level, the market could retest the levels of 84000-83800.

“On the flip side, 84800 would be the immediate resistance zone for day traders. If it succeeds in trading above this level, then it could bounce back to 85200-85400.” The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders.