Short-term outlook is weak but oversold
Above 78,500, it may move up to 80,000-80,500; conversely, a below 78,500, it could slip to 78,000-77,800
Short-term outlook is weak but oversold
The benchmark indices corrected sharply. After a sharp decline, the Sensex was down by 1123 points. Among sectors, almost all the major sectoral indices closed in the negative territory, but the Metal Index lost the most, shedding over 4 per cent.
Technically, after a gap-down open, the market hovered between the 78,500 to 79,500 range. “We are of the view that the short-term outlook is weak but oversold,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.
For traders, 78,500 would act as a key support zone. If the market sustains above this level, the immediate resistance would be at 79,500. Above 79,500, it could move up to 80,000-80,500.
Conversely, a decline below 78,500 could change the sentiment. Below this, the market could slip to 78,000-77,800. The current market texture is extremely volatile and is expected to remain volatile in the near future.
