Market may weaken further from current levels

Mumbai, Nov 24

The benchmark indices continued profit booking at higher levels, with the Sensex down by 331 points.

Among sectors, almost all the major sectoral indices witnessed profit booking at higher levels, but the Défense and Reality indices lost the most, shedding over 2 per cent.

Technically, after a positive open, the market took resistance near 85,500 and, due to profit booking at higher levels, corrected sharply. From the day's high, the market corrected over 700 points. Additionally, on daily charts, it has formed a bearish candle, which supports further weakness from the current levels.

“For day traders now, 85,000 would act as a trend decider level,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

As long as the market is trading below this level, weak sentiment is likely to continue on the downside, and the market could slip till 84,700-84,500. On the flip side, if it moves above 85,000, it could bounce back to 85,500-85,700.

The intraday market texture is volatile; hence, level-based trading would be the ideal strategy for day traders.