Relief rally fails to shift weak short-term mkt trend

The benchmark indices witnessed a relief rally on Tuesday, with the Sensex rising by 1,187 points. Among sectors, Defence and Capital Market indices outperformed — Defence surged 5.52 per cent, while Capital Market gained 4.75 per cent.

However, despite the strong overall momentum, Healthcare and Pharma indices declined by nearly 1 per cent.

Technically, backed by positive global cues, the market opened with a gap-up. However, after a firm start, profit booking emerged at higher levels, capping gains.

“We believe the short-term trend of the market remains on the weaker side,” said Shrikant Chouhan, Head - Equity Research, Kotak Securities.

That said, due to temporary oversold conditions, a pullback rally from current levels cannot be ruled out.

For traders, the 72,500 and 72,000 levels will act as key support zones. As long as the market holds above these levels, the pullback could extend, with 73,800–74,200 seen as immediate resistance for the bulls. Given the current volatile and non-directional setup, level-based trading remains the preferred strategy for traders.