66,000 key level for Sensex

Mumbai: The benchmark indices continued positive momentum as BSE Sensex was up by 385 points. Among sectors, banking, finance, reality and media stocks witnessed buying interest whereas intraday profit booking were seen in pharma and selective FMCG stocks.

Technically, after a muted opening the index successfully cleared the short-term resistance of 66,000 and post breakout it intensified the positive momentum. Higher bottom formation on intraday charts and bullish candle on daily charts supports further uptrend from the current levels.

“We are of the view that, for the trend following traders now, the 66,000 would be the key level to watch out. Above which, the index could move up till 66,500-66,600,” says Shrikant Chouhan of Kotk Securities. On the flip side, below 66,000 uptrend would be vulnerable.

Vinod Nair, head (research) at Geojit Financial Services, says, “The domestic market initially opened with a lacklustre performance, influenced by weak global cues. However, as the day progressed, a decline in U.S. bond yields and crude oil prices injected some positivity into the market. This optimism was most prominent in banking stocks. Interestingly, mid- and small-cap stocks managed to retain investor interest even though their valuations are relatively high.” Nonetheless, the persistently weak trade data from China continues to cast a shadow over the global market’s outlook.