Market is largely negative
The stock market remains largely negative as global cues, investor caution, and sectoral weakness weigh on sentiment. Analysts expect volatility to continue.
Market is largely negative
Today, the benchmark indices corrected sharply. The Nifty ended 225 points lower, while the Sensex was down by 610 points. Among sectors, all the major sectoral indices traded in the red, but Défense and Realty indices lost the most, shedding over 3 percent.
Technically, on daily charts, it has formed a long bearish candle and also closed below the 20-day SMA (Simple Moving Average), which is largely negative.
“We believe that as long as the market is trading below the 20-day SMA or 85,400, the weak sentiment is likely to continue,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.
On the downside, it could slip till 84,800. Further downside may also continue, potentially dragging the index to 84,500. On the flip side, above 85,400, we could see a one pullback rally up to 85,700-85,800.
