Mkt may weaken further from current levels

The benchmark indices corrected sharply. The Sensex was down by 1353 points. Among sectors, almost all the major sectoral indices witnessed profit booking at higher levels, but the Auto and PSU Bank indices lost the most, shedding nearly 4 per cent.

Technically, on the backdrop of weak global sentiment, our market opened with a gap down of over 2,400 points. However, in the second half, it trimmed some losses. On daily and intraday charts, the market is holding a lower top formation, which indicates further weakness from the current levels.

“We are of the view that the current market texture is weak but oversold. For day traders, 77,500-77,200 would act as key support zones,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

Above this, we could see an extension of the pullback move till 78,000-78,200. On the flip side, below 77,200, the selling pressure is likely to accelerate. If the market falls below this level, it could retest 76,500. Further downside may also continue, potentially dragging the index to 76,000.