Buying on intraday correction would be ideal strategy
For bulls, 61,300 and 61,100 would be key supports zones, above which the index could retest 61,900 zone; On the flip side, below 61,100, uptrend would be vulnerable
image for illustrative purpose
Mumbai: On last Monday, the benchmark indices witnessed profit booking at higher levels. BSE Sensex was down by 170 points. Among sectors, buying was seen in metal and reality stocks whereas media and FMCG stocks corrected sharply, Media index shed over two per cent.
Technically, the last Friday sharp surged the index and opened with a positive note, but due to profit booking at higher levels, it closed in the red. On daily charts the index has formed small bearish candle which indicating indecisiveness between the bulls and bears.
"We are of the view that, the short-term texture of the market is still in to the positive side and buying on intraday correction could be the ideal strategy for the day traders," says Shrikant Chouhan, head (equity research-retail), Kotak Securities.
For the bulls, 61,300 and 61,100 would be the key supports zones, above which the index could retest the level of 61,900. Further upside may also continue which could lift the index up to 62,200. On the flip side, below 61,100, uptrend would be vulnerable.
