Market trend still positive, range bound
For a third consecutive day, the market failed to sustain at higher levels and by the end of the trading session, the BSE Sensex closed at the lowest point of the day.
image for illustrative purpose
Mumbai: For a third consecutive day, the market failed to sustain at higher levels and by the end of the trading session, the BSE Sensex closed at the lowest point of the day. In the absence of any specific news flow from the domestic markets, our markets followed global cues, which are trading with negative bias. The dollar index held gains that would keep the sentiment of the market subdued.
Technically, the market has formed a Double Top at 52,850 levels and closed below the lowest of the previous day, which was at 52,550 points.
Based on that, Sensex would fall to 52,200 level. However, as the underline trend of the market is still positive and range-bound, our strategy should be to buy between 15,650 and 15,600 (52200/52000) levels.
"Keep a final stop loss at 51,800 for the same. On the up-side, 52,700 and 52,850 would be major hurdles," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
