Sensex falls 732 points on profit booking

New Delhi, May 3 (IANS) The BSE Sensex on Friday fell 732 points to close at 73,878 due to profit booking by investors.Vinod Nair, Head of Research, Geojit Financial Services said profit booking and a degree of caution ahead of the release of the US non-farm payroll resulted in selling pressure in the market."However, the absence of significant negative surprises in Q4 earnings thus far, along with a decline in oil prices, might help to mitigate the downside," he said.Though the correction was broad-based, the large-cap stock was the key underperformer due to the moderation of FII's exposure to the domestic market, he said.Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said the Nifty index is showing signs of near-term bearishness as it forms a double top pattern on the daily chart, coupled with a bearish engulfing candle. This suggests a sell-on-rise approach in the market. On the downside, the index has immediate support at 22,300, and a breach below this level could accelerate the downside momentum.Mayank Mehraa, smallcase Manager and Principal Partner at Craving Alpha, said that Friday's correction could aid bullish investors by providing liquidity for a potential rally next week. These swift corrections prevent complacency, fostering a more sustainable bull run.--IANSsan/sha

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