Charts hint at indecisiveness
As long as Sensex is trading above 71,600 level, the bullish texture is likely to continue
image for illustrative purpose
Mumbai: On Thursday, the benchmark indices witnessed range-bound activity. BSE Sensex was up by 268 points. Among sectors, PSU Banks and Oil and Gas indices outperformed, both the indices rallied over two per cent whereas intraday profit booking were seen in selective Pharma and Media stocks.
Technically, after an early morning intraday correction, the market took the support near 71,600 and reversed. Post reversal, entire day it is comfortably trading above 71,600 which is largely positive. However, on daily charts, the index has formed Doji candlestick formation, which indicating indecisiveness between the bulls and the bears.
“For the trend following traders now, the 71,600 level would act as a sacrosanct support level. As long as the index is trading above the same, the bullish texture is likely to continue,” says Shrikant Chouhan, head (equity research), Kotak Securities. Above which, the market could move up till 72,500-72,800 range. On the flip side, fresh sell off possible only after dismissal of 71,600pts. Below the same, the index could retest the level of 71,100-70,900 range.
Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Positive global cues bolstered domestic equities as key indices rose for a third straight session amid sharp gains in auto, power, metals and oil & gas stocks. The highlight of Thursday’s session was Sensex closing past the crucial 72,000 mark.”
