Level-based trading ideal for day traders
Now, 74000-73700 would be key supports zones while 75000-75500 would act as a crucial resistance area for the bulls
image for illustrative purpose
Mumbai: On Wednesday, the benchmark indices bounced back sharply as BSE Sensex was up by 2,304 points. Among sectors, all the major sectoral indices were traded into the positive territory, but Metal and Private Bank indices outperformed, rallied over five per cent.
Technically, after early morning sell off, Sensex took the support near 71,900 and bounced back sharply. From the day’s lowest point, the market rallied over 2,600 points. In addition, it also reclaimed the level of 74,000 or 50-day SMA (Simple Moving Average), which is largely positive.
“We are of the view that, the current market texture is extremely volatile. Hence, level-based trading would be the ideal strategy for the day traders for the traders now, the 74,000-73,700 would be the key supports zones while 75,000-75,500 would act as a crucial resistance area for the bulls. However, below 73,700 uptrend would be vulnerable,” says Shrikant Chouhan, head (equity research), Kotak Securities.
The driven by investor optimism following PM Modi’s victory speech, ensuring political stability and supportive policies. “All sectoral indices closed in green, with leading gains India VIX tumbled 29 per cent, signalling reduced market volatility. Top gainers included Adani Ports (+7.29 per cent) and IndusInd Bank (+7.06 per cent), while L&T and BPCL saw marginal losses,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
