Sensex forms lower top
62,000 could be the immediate hurdle for bulls, below which, they could retrace till 62,450-61,200; On the flip side, dismissal of 61,700 could accelerate selling pressure and below the same, it could retest 61,400-61,200 level
image for illustrative purpose
Mumbai: The benchmark indices witnessed lackluster activity, BSE Sensex was down by 230 points. Among sectors, Auto and Digital indices corrected over one per cent, whereas some buying interest was seen in selective PSU bank stocks.
Technically, on intraday charts, the index has formed lower top formation which is broadly negative. However, the medium term texture of the market is still in to the bullish side.
"We are of the view that, 62,000 could be the immediate hurdle for the bulls. Below which, there could retrace till 62,450-61,200," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the flip side, dismissal of 61,700 could accelerate the selling pressure. Below the same, the index could retest the level of 61,400-61,200. Level 62,000 would be the fresh breakout levels for the bulls, above which the index could move up to 62,300-62,500. Contra traders can take long bet near 61,200, with strict 61,000 support stop loss level.
