Quick pullback rally is likely
Level-based trading would be the ideal strategy for the day traders
Mumbai: Profit booking continues in markets as BSE Sensex was down by 313 points. Among sectors, financial, oil and gas indices corrected sharply whereas despite weak market sentiment some buying were seen in Pharma and selective PSU Banks stocks. Technically, after early morning correction, eventually the market took the support near 70,800 and bounce back sharply. However, the short-term texture of the market is still in to the weak side.
“We are of the view that, the intraday chart formation is still in to the weak side but we could see one quick pullback rally if the index succeeds to trade above 71,450 above the same, the market could bounce back till 71,700-72,000,” says Shrikant Chouhan, Head-Equity Research, Kotak Securities.
On the flip side, below 70,900 selling pressure is likely to accelerate. Below the same, the market could slip till 70,700-70,500. The current market texture is volatile hence; level based trading would be the ideal strategy for the day traders.
