Weak momentum may continue
72,800 would act as a key level to watch out. Below the same, the weak momentum is likely to continue. Below which, the market could slip till 71,600-71,350
Mumbai: On Thursday, the benchmark indices corrected sharply as BSE Sensex was down by 723 points. Among sectors, FMCG, private banks and Financial indices shed over two per cent, whereas despite weak market sentiment PSU Bank index outperformed, gained over two per cent. Technically, on intraday charts index has formed lower top formation and it formed bearish candle on daily charts, which supports further weakness from the current levels. “For traders now, the 72,800 would act as a key level to watch out. Below the same, the weak momentum is likely to continue. Below which, the market could slip till 71,600-71,350 range,” says Shrikant Chouhan, head (equity research), Kotak Securities.
On the other side, above 72,800 points, the sentiment could change. Above the same, Sensex could move up till 73,100-73,300. Prashanth Tapse, Senior VP (Research), Mehta Equities says, “selling intensified after the RBI’s monetary policy announcement in the first half with heavy selling in private banking scrips leading the slump.”
Banking industry has been facing liquidity issues in recent times and with the central bank’s decision showing no signs of interest rate cut in the near term, investors slashed their positions in financial stocks. However, sharp gains in IT and oil & gas stocks helped markets pare losses, although underlying sentiment remains sluggish to negative.
