Sensex holds higher bottom formation on charts

Mumbai: On Tuesday, the benchmark index Sensex was up by 379 points. Among Sectors, Auto and Reality indices outperformed. Auto gained 2.5 per cent and Reality index rallied over 2 per cent. Whereas some profit booking was seen in PSU banks and media stocks.

"Technically, after a gap up opening the index held the positive momentum throughout the day which is broadly positive, it also held the higher bottom formation on intraday charts," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

For the trend following traders now, 59,650 would be the trend decider level. Above which, the index could hit the level of 60,000-60,200. On the flip side, quick intraday correction is possible if the index succeeds to trade below 59,650. Below which, the index could retest 59,500-59,300.