Weak sentiment likely to continue

Mumbai: The benchmark indices witnessed a profit booking at higher levels as BSE Sensex was down by 671 points. Among sectors, almost all the major sectoral indices witnessed profit booking at higher levels, but PSU Bank index lost the most, shed over two per cent.

Technically, the index has formed bearish candle on daily charts and it also formed lower top formation on intraday charts, which supports further weakness from the current levels. “For the short-term traders now, as long as the index is trading below 71,800 weak sentiment is likely to continue. Below the same, the market could slip till 71,000-70,900,” says Shrikant Chouhan, head (equity research), Kotak Securities.

On the flip side, above 71,800 the sentiment could change. Above 71,800, the market could retest the level of 72,200-72,300. The current market texture is volatile hence levels based trading would be the ideal strategy for the short-term traders.