Pullback formation may continue
Uptrend below 71,400 will be weak and may fall to 71,400 or 71,000
image for illustrative purpose
Mumbai: After three days of decline, benchmark indices rose sharply on Friday. Nifty closed 176 points higher while Sensex was up 542 points. Among sectors, almost all majority sector indices witnessed buying at lower levels, but digital and infra indices outperformed, with both indices rising over 1 per cent. Technically, the market remained in the range of 71,550-71900 after opening the gap throughout the day, non-directional movement on the intraday chart indicates indecision between bullish and bearish.
“We believe that the market is witnessing positive consolidation at current levels. For traders, as long as the index is trading above 71,400, the pullback formation is likely to continue,” says Amol Athawale, Vice President - Technical Research Kotak Securities.
Above that the market can go up to 72,000-72,200. On the other hand, the uptrend below 71,400 will be weak and may fall to 71,400 or 71,000. Below this, traders may prefer to exit trading long positions.
