Mkt may further weaken from current levels

Mumbai: The benchmark indices corrected sharply, with the Sensex down by 1,069 points. Among sectors, the IT index lost the most, shedding over 4.45 per cent, whereas despite the weak market sentiment, the Metal index outperformed and rallied over 1 per cent.

Technically, after a gap-down open, the market has been facing consistent selling pressure at higher levels. A long bearish candle on the daily charts and a lower top formation in intraday charts indicate further weakness from the current levels.

“We are of the view that the intraday market texture is weak, but a fresh selloff is possible only after the market breaches the 200-day Simple Moving Average (SMA) or 82,000,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

If the market manages to trade above this level, it could bounce back to 82,500-82,800. Conversely, if it falls below 82,000, it could slip to 81,700-81,500.

The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders.