Why Are Investors Booking Profits And What It Means For The Market Going Forward

Brijesh Ail, Head of Technical & Derivatives at IDBI Capital Markets & Securities, shares his analysis on the current market scenario. According to him, the recent market sell-off is primarily due to profit booking after the index nearly reached the resistance level of 25,200. With the earnings season coming to an end, most of the market traction has already been factored in, leading to a more range-bound market structure. He also points out that the slight rise in COVID-19 cases is contributing to some uncertainty, although this has already been discounted by the market. Brijesh notes that the key support level to watch is around the 24,500 mark, which may act as a demand zone and help stabilise the market. While stock-specific trades might dominate in the near term, the overall market is expected to pause and consolidate before deciding its next move. This cautious outlook reflects the balance between profit booking and underlying market strength.