Mumbai: The market has shown some recovery and is trading with moderate losses and the Sensex is down 24.52 points or 0.18 per cent at 13740.94.
In the last three days, the markets have been ambling around during the day and then closing at the lowest point. There is a little bit of sluggishness with no fresh global cues.
Analysts fear that if this carries on for another few days more, then the bears will come back into play as the markets have already lost 500-odd points from the peak. So at 13700 are we in serious trouble?
Gautam Shah, of JMMS Technicals says that if the 13,300 level is breached then the Sensex could fall to 12,300-12,400. Similarly if 4030-4050 is breached, Nifty could fall to 3900. He thinks that the market is looking weak on charts and most index heavyweights are down on the charts.
"So we are in a range and we have been trading low volumes, the momentum seem to have just got lost, mid caps are correcting, volumes are low and I think this is a market which is just setting up for a breakdown possibly in the next couple of days" thinks Shah.
Analysts feel that if the market corrects a bit more then there is a possibility of the bears getting more active which might see the pressure getting a bit extended.
Vibhav Kapoor of IL&FS thinks that 13,500-13,550 is an important level because it is an important run up from 12,400 to 14,200 and if the market starts to slip below 13,500, then it has the potential to go back to 12,800-12,900.
"I would say something between 12,800 to 14,500 or 14,700, it is a broad range but that is what the market has been doing over the last six months and it will continue to do that till the time something decisively happens in the international market or domestically to get out of that range" he adds.
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