Market is largely negative

Mumbai: The benchmark indices witnessed profit booking at higher levels. The Sensex was down by 539 points. Among sectors, intraday buying was seen in selective pharma and healthcare stocks, while the capital market index shed over 1 per cent. Technically, on daily charts, the market has formed a bearish candle, and on intraday charts, it is holding a lower top formation, which is largely negative.

“We are of the view that the intraday market texture is weak, but we could expect a one technical bounce back if the market manages to trade above 77,000 support zone,” says Shrikant Chouhan, Head – Equity Researh, Kotak Securities. Above this level, it could bounce back to 77,500-77,700. On the flip side, below 76,700, selling pressure is likely to accelerate. Below this, the market could slip to 76,500-76,200.