Uptrend may continue in near term
For trades the support is at 57,700, above which it could retest 58,500-58,700 level; On flip side, fresh round of selling is possible only after dismissal of 57,700, below which, it could slip till 57,400-57,200
image for illustrative purpose
Mumbai: The benchmark indices witnessed sharp recovery from the day lowest level, after a gap-down opening, NSE Nifty ended 61 points lower, while BSE Sensex was down by 200 points. Among sectors, ahead of TCS result, the IT index outperformed rallied over one percent. While profit booking continued in FMCG stocks, as result FMCG index shed over one percent. Technically, after a gap-down opening, the index took the support near 57,400 and bounced back sharply.
On daily charts, the index has formed bullish candle and also formed reversal formation, which is broadly positive.
"We are of the view that, the index has completed one leg of technical correction and reversed. The texture of the chart indicating strong possibility of continuation of uptrend in the near term," says Shrikant Chouhan of Kotak Secuities.
For the trades the support has shifted to 57,700 from 57,400. Above the 57,700 the index could retest the level of 58,500-58,700. On the flip side, fresh round of selling is possible only after dismissal of 57,700. Below which, the index could slip till 57,400-57,200.
