Mkt may further weaken from current levels
On the downside, the market could retest 82,000, with a potential to slip to 81,700levels;Above 82,700 it may move towards 83,000-83200
Mkt may further weaken from current levels
Mumbai: The benchmark indices corrected sharply. The Sensex was down by 1236 points. Among sectors, all the major sectoral indices traded in the negative territory, but Reality and Media indices lost the most, shedding nearly 2 per cent.
Technically, after a muted open, the market breached the 50-day SMA (Simple Moving Average) or 83,800 level, and post-breakdown selling pressure intensified. A strong reversal formation and a long bearish candle on the daily charts indicate further weakness from the current levels.
“We are of the view that, as long as the market trades below the 20-day SMA (Simple Moving Average) or 82,700, the weak sentiment is likely to continue.”
On the downside, the market could retest the level of 82,000. Further downside may also continue, which could drag the index to 81,700.
On the flip side, above 82,700, the pullback move could extend to 83,000-83200. The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders.
