Mumbai: On Monday, the domestic stock market witnessed a sharp selloff. BSE Sensex was down by 1,133 points. Post long weekend, the market opened with a gap down and touched the level of 200-day SMA. However, after morning selloff eventually it took the support near 56,850 and trimmed some losses. From the day lowest level, the index recovered over 300 points. Among sectors, IT Index lost the most, shed over 4 percent, whereas despite weak momentum buying interest was seen in selective Energy and Metal stocks. Technically, the Nifty / Sensex has formed Gapping down Doji candlestick formation, which suggests indecisiveness between bulls and bears. Direction wise, post sharp fall, the Nifty is trading near 200 and 50-day SMA.
“We are of the view that, the larger texture is still in to the bearish side and fresh pullback rally possible only after 57,300 level. Above the same, the pullback rally is likely to continue till 57,600-57,900,” says Shrikant Chouhan, head (equity research-retail), Kotak Securities.
On Wednesday’s trading session, the HDFC twins dragged down Indian equity indices, wiping out early gains and settling lower for the third day in a straight amid continuous foreign capital withdrawals. Markets got off to a positive start, with traders bolstered by official statistics indicating that manufacturing output increased 1.7 percent in February, owing primarily to increases in the mining and power generation sector.