60,200 may act as resistance level
image for illustrative purpose
Mumbai: As expected, a range-bound movement was seen in the benchmark indices on Monday. BSE Sensex closed down 184 points. Across sectors, buying was seen in pharma, PSU banks and mid-cap IT stocks, while intraday profit booking was seen in infra and FMCG stocks. Technically, after the gap-up opening, the market saw profit booking at higher levels, which were at 60,113.
“We are of the view that 60,200 will now act as an important resistance area for the traders. Above that, the market can go up to 58,500-58,700,” says Shrikant Chouhan, head (equity research (retail), Kotak Securities.
On the downside, selling pressure may increase below 59,550. Below this, the index may test 59,300-59,000 levels again. Investors are advised to keep a stop loss at 59,000. For the bank Nifty 42,400 and 4,500 would be a resistance zone and support exists at 41,800.
