Sensex forms Lower Top pattern

Mumbai: The benchmark indices on Wednesday witnessed a volatile price action, after a roller-coaster activity as BSE Sensex was down by 208 points. Among sectors, Metal index shed over one per cent whereas buying was seen in pharma stocks, as a result Pharma index rallied over one per cent.

Technically, on daily charts, the index has formed reversal formation and it also formed lower top formation on intraday charts which is largely negative. On the flip side, above 62,000 points, the index could retest the level of 62,200-62,350 points. “For the traders now, the 62,000 would act as an immediate resistance zone. Below the same, the weak sentiment is likely to continue. Below 62,000 level, the index could slip till 61,700-61,600,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.