Weak sentiment likely to continue

Mumbai: The benchmark indices witnessed intraday profit booking at higher levels. The Sensex was down by 353 points. Among sectors, IT index was the top loser, shed over 1 per cent whereas some buying interests were seen in selective energy and oil and gas stocks.

Technically, on intraday charts the index consistently facing selling pressure at higher levels and on daily charts, it also formed bearish candle, which is largely negative. However, the short-term texture of the market is still in to the positive side.

Shrikant Chouhan, Head Equity Research, Kotak Securities, said: “We are of the view that, as long as the index is trading below 73,000 the weak sentiment is likely to continue. Below which, the market could slip till 72,500-72,300.”

On the flip side, above 73,000 the sentiment could change. Above 73,000, it could move up till 73,250-73,350. Contra traders can take a contra bet near 72,300 with strict 72,100-support stop loss.

Prashanth Tapse, Senior VP (Research), Mehta Equities, says, “Markets languished in negative territory throughout the trading session and fell sharply towards the closing stages as profit-taking in banking, IT, and metals led the slump, whereas buying in power stocks capped the fall.”

Overall, the mood was sluggish across the global markets, which forced domestic investors to resort to selective profit-taking amid geo-political tensions and uncertainty over rate cuts.