Kumud Das Mumbai

Thebenchmark indices saw continued profit booking at higher levels. The Sensex fell by 143 points. Among sectors, the Chemical and Defense indices declined nearly 2.5 per cent. Despite weak sentiment, the IT index outperformed, gaining over 2.85 per cent.

Technically, after opening with a gap-up, the market slipped below 74,500, with selling pressure intensifying after the breakdown. From the day’s high, the market dropped nearly 1,450 points before recovering some losses in the final hour. On the daily chart, the index formed a bearish candle, while the intraday lower-top formation suggests a broadly negative setup.

“For day traders, the 20-day SMA (Simple Moving Average), along with 73,700 and 73,500, would act as key support zones,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities. If the market holds above these levels, it could rebound toward 74,000-74,500. Conversely, selling pressure is likely to intensify below 73,500, potentially pushing the market toward 73,000-72,800. Given the current volatility, level-based trading would be the preferred strategy for day traders.