Technical View: ‘Market ​is vulnerable to ​further correction’, says analyst; ‘23,330 expected to act…

Fresh updates from the financial markets indicate that The benchmark The two key benchmark indices ended elevated on Thursday, supported by fag-end buying, even as market watchers stated the market remained vulnerable to further correction.

The Sensex advanced 138.36 points, or 0.19 percent to settle at 74,902.59. Through the session, it touched a high of 74,910.96 and a low of 74,598.47.

The NSE Nifty edged elevated by 46.30 points, or 0.2 percent to close at 23,477.80.

The upside came after three consecutive sessions of slide. That stated, the Nifty and Sensex have fallen 2.5 percent and 2.7 percent, respectively, so far in September, ending softer in six of the eight sessions this month.

"Technically, the market is vulnerable to further correction, and the fundamental macro trends keep deteriorate," stated V K Vijayakumar, chief investment strategist at Geojit Investment.

Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, stated the 23,350-23,330 zone is anticipated to act as a crucial backing area for the index.

"A sustained breach below 23,330 could trigger further softness and drag the index towards the 23,200 level in the near term. On the upside, the 23,550-23,580 zone is likely to act as an immediate resistance," he stated.

The key market indices remained largely muted during the regular market session on Thursday.

Indicative closing marks for the benchmarks briefly jumped more than 1 percent during the closing auction session (CAS), compared with a slight loss after the end of normal trading at 3:15 pm IST.

Rupak De, Senior Technical Market observer at LKP Securities, stated the Nifty closed elevated as the CAS closing came in high following a lacklustre session.

"On the daily timeframe, the index has formed a hammer pattern, suggesting a pause in the recent bearish trend. On the softer end, immediate backing is placed in the 23,380-23,400 zone. On the elevated end, resistance is placed at 23,550-23,600. A sustained move above 23,600 could extend the recovery towards 23,800," he stated.

Elevated crude prices have additionally kept market participants nervous ahead of US inflation data, which could provide clues to the The US central bank's policy decision anticipated the week ahead, two traders stated.