1 week ago
Sensex Faces Selling Pressure as Analyst Warns Further Weakness
Indian stock markets had a weak trading session.
The Sensex fell by 183 points.
Investors sold shares after prices moved higher.
Metal and Private Bank stocks performed better than other sectors.
IT stocks fell the most, by 1.45 percent.
A chart pattern called a bearish candle suggested that prices could weaken further.
Analyst Shrikant Chouhan said the market could fall more if the Sensex goes below 77,300.
He also said prices could rise if the index moves above 77,800.
The Sensex fell 183 points after selling pressure emerged at higher levels.
Metal and Private Bank indices gained more than 1 percent, while the IT index fell 1.45 percent.
The market formed a bearish candle on daily charts after opening positively.
Shrikant Chouhan said a fresh selloff could begin if 77,300 is breached.
A move above 77,800 could support a rally toward 78,300-78,500, making level-based trading preferable.
- Who
- The Sensex, sectoral indices, investors and analyst Shrikant Chouhan of Kotak Securities.
- What
- Indian benchmark indices faced selling pressure, with the Sensex falling 183 points and technical indicators pointing to possible further weakness.
- Where
- Mumbai.
- When
- During the reported trading session and the near-term intraday market.
- Why
- Selling pressure at higher levels and a bearish daily-chart pattern weakened the market; the analyst identified key levels at 77,300 and 77,800.
Downside Case
Upside Case
Key market level
Downside Case
Below 77,300, the market could slip to 77,000-76,700, according to Shrikant Chouhan.
Upside Case
Above 77,800, the rally could continue toward 78,300-78,500.
Trading outlook
Downside Case
The bearish daily candle and selling pressure suggest that the market may weaken further.
Upside Case
The market could continue rising if it clears the identified resistance level.
Key facts
- Sensex move
- Down 183 points
- Best-performing sectors
- Metal and Private Bank indices rose more than 1 percent
- Weakest sector
- The IT index fell 1.45 percent
- Downside trigger
- A break below 77,300 could lead to further selling
- Downside targets
- 77,000-76,700
- Upside trigger
- A move above 77,800 could extend the rally
- Potential upside
- 78,300-78,500
Quotes
Shrikant Chouhan
Head of Equity Research at Kotak Securities
“We believe that, intraday, the market texture is weak, but a fresh selloff is possible only after the dismissal of 77,300 below this, the market could slip to 77,000-76,700”
thehansindia.com
Sources
Related news
Sensex Falls as Selling Pressure Signals Further Market Weakness
Indian Market May Weaken After Selling At Higher Levels
Indian Market Falls as Profit Booking Pressures Benchmark Indices
Indian Markets Stay Weak as Profit Booking Continues
Sensex falls 281 points as Nifty slips below 20-day SMA
Sensex Up 114 Points as Profit Booking Continues at Highs
Mahindra-SML Merger Targets Growth Through Shared Platforms and Services
Major Banks Cut FCNR Deposit Rates After Subsidy Ends
Axis Securities Names 15 Stocks With Up To 40% Upside
Indian Market Ends Lower as Volatility Keeps Trading Non-Directional
Anand Mahindra Says Businesses Need Stability and Direction
