Sensex, Nifty snap seven sessions of gaining streak; more downside likely?

Sensex and Nifty snapped their seven-session gaining streak on Thursday amid profitbooking and monthly expiry day of the April derivatives contracts. Sensex slipped 315 pts to 79,801 and Nifty tumbled 82 pts to 24,246 in the current session. Nifty climbed 1930 pts and Sensex rose 5954 pts in the last seven sessions. 

Investor wealth slipped to Rs 429.63 lakh crore today against Rs 430.47 lakh crore in the previous session. 

Of 30 Sensex stocks, 13 ended in the red. HUL, Bharti Airtel, ICICI Bank, Eternal, M&M, HCL Technologies, HDFC Bank and Kotak Bank were the top Sensex losers, falling up to 4%. 

Midcaps and smallcaps were ended in the red in the current session. On BSE, the midcap index fell 70 pts to 43,590 and the small-cap index fell 5 pts to 49,267.
 
Shrikant Chouhan, Head Equity Research, Kotak Securities says the short term trend for market looks bullish. 

"We believe that the short-term market texture is bullish, but a fresh uptrend rally is only possible after the dismissal of the 24350/80100 resistance zone. Above this level, the market could move up to 24450-24500/80400-80500. On the other hand, if the market falls below 24200/79600, we could see a quick intraday correction down to 24100/79300. Further downside may also continue, which could drag the market down to 24000/79000," said Chouhan. 

"The current market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders," he added. 

Rupak De, Senior Technical Analyst at LKP Securities said, "Nifty remained flat throughout the day, ending on a flattish note. While the short-term sentiment remains strong, signs of fatigue are becoming increasingly evident. A small correction may happen if the index sustains below 22,300. On the downside, the Nifty could decline towards 21,900, while resistance is seen at 24,300 and 24,500."

Previous session 

Sensex rose 520.90 points or 0.65 percent to close at 80,116.49 and Nifty climbed 161.70 points or 0.67 percent at 24,328.95.