Some profit booking at higher level likely

Mumbai: The bulls continued positive momentum for eight days in a row. The benchmark index BSE Sensex was up by 235 points. Among sectors, Healthcare and Pharma indices rallied over two per cent whereas intraday profit booking were seen in PSU banks and selective media stocks. Technically, the index has formed bullish candle on daily charts and it also holding higher high and higher low formation on intraday charts. “We are of the view that, the short-term texture of the market is bullish, but due to temporary overbought conditions we could see some profit booking at higher levels,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

For the day traders now, the 60,100 level would be the key support, above which the market could rally till 60,700-60,800 points. On the flip side, below 60,100 level, a quick intraday correction is possible. Below the same, the index could retest 59,800-59,700 points.