Market may weaken further

Mumbai: The benchmark indices experienced profit booking at higher levels. The Sensex was down by 171 points. Among sectors, the Metal index rallied over 1.50 per cent, whereas the PSU Bank and Defense indices shed nearly 1 per cent.

Technically, after a positive open, the market has been facing consistent selling pressure at higher levels. A bearish candle on daily charts and a reversal formation on intraday charts indicate further weakness from the current levels.

“We believe that 77,500 will act as an immediate resistance zone for the bulls,” says Shrikant Chouhan, Head – Equity Research, Kotak Securities. As long as the index is trading below this level, the weak formation is likely to continue.

On the downside, the market could slip to 76,800-76,500. On the flip side, above 77,500, the market could bounce back to 77,800-78,000.