71,250 to act as support level
image for illustrative purpose
Mumbai: The benchmark indices on Wednesday witnessed a pullback rally as BSE Sensex was up by 272 points. Among sectors, Media index rallied over three per cent whereas intraday profit booking was seen in selective PSU Banks and FMCG stocks. Technically, after early morning intraday correction, the nifty took the support near 20 day SMA (Simple Moving Average) and bounced back sharply. From the day lowest point the market recovered over 660 points.
“We are of the view that, 20-day SMA or 71,250 could act as a sacrosanct support level for the traders,” says Shrikant Chouhan, head (equity research), Kotak Securities. Above the same, the pullback formation is likely to continue. Above which chances of hitting 71,900-72,100 would turn bright. However, below 20 day SMA or 71,250 the selling pressure is likely to accelerate.
