Wait for further weakness from current levels
In the past week the benchmark indices witnessed a volatile momentum, after a roller coaster activity, the Sensex closed at 57,527. Among Sectors, Metal and Reality indices corrected sharply, both the indices shed over 4 per cent whereas after a long correction some buying interest was seen in selective pharma stocks.
Nifty forms Hammer on weekly chart
Mumbai: In the past week the benchmark indices witnessed a volatile momentum, after a roller coaster activity, the Sensex closed at 57,527. Among Sectors, Metal and Reality indices corrected sharply, both the indices shed over 4 per cent whereas after a long correction some buying interest was seen in selective pharma stocks.
During the week, the market once again took the support near 57,000 and recovered sharply but due to profit booking it failed to closed above 57,700 mark which is broadly negative. Technically, a reversal formation on daily charts and bearish candle on weekly charts indicating further weakness from the current levels.
“We are of the view that, as long as the index is trading below 58,000 the weak sentiment is likely to continue below the same, the Sensex could retest the level of 57,000 further weakness may also continue which could drag the index till 56,700,” says Amol Athawale, Deputy Vice President - Technical Analyst, Kotak Securities. On the flip side, fresh uptrend move possible only after dismissal of 58,000. Above which, the market could move up to 58,300-58,50, he said. For the bank nifty 39,750 or 200 day SMA would act as a trend decider level. Below which, the bank nifty could slip till 39,000-38,700. On the flip side, above 200 day SMA or 39750 it could rally till 20 day SMA or 40,00-40300.
