Mkt may weaken further from current levels

In the last session of the week, the benchmark indices corrected sharply. The Sensex was down by 2370 points. Among sectors, PSU Banks and India Tourism indices lost the most; PSU Banks shed 6.5 per cent, and the India Tourism index was down 5.88 per cent, whereas the Defence index was up by 4.85 per cent.

During the week, the market slipped below the 81,000 mark, and post-breakdown, selling pressure intensified. Currently, the market is trading well below short-term and medium-term averages and is also forming a lower top on daily charts. In addition, a bearish candle on weekly charts also indicating further weakness from the current levels.

Amol Athawale, Kotak Securities, said: “We are of the view that the short-term market texture is volatile; hence, level-based trading would be an ideal strategy for traders. On the downside, 78,800 would act as an immediate support zone for traders.

“Below 78,800, the market could retest levels of 77,900. Further downside may also continue, which could drag the index to 77,500. On the flip side, 79,500 would be the immediate resistance zone for traders. If the market succeeds in trading above 79,500, then the pullback move could continue till 80,400-80,600.”