Charts indicate temporary weakness
75,000-74,750 would act as key support levels, while 75,700-76,000 could be the key resistance areas for traders
image for illustrative purpose
Mumbai: On Monday, the benchmark indices witnessed a profit booking at higher levels as BSE Sensex was down by 20 points. Among sectors, PSU Bank index was the top gainer, rallied 1.33 percent whereas intraday profit booking were seen in selective energy and metal stocks.
After a muted opening, the market registered fresh all time high of 76,009.68 points. However, due to profit booking at higher levels it corrected sharply. After a promising uptrend rally, the index has formed bearish candle on daily charts, which indicating temporary weakness.
“We are of the view that, the larger market texture is still in to the positive side, but buying on intraday correction and sell on rallies would be the ideal strategy for the day traders,” says Shrikant Chouhan, head (equity research), Kotak Securities.
Technically, the 75,000-74,750 would act as key support levels while 75,700-76,000 could be the key resistance areas for the day traders. However, below the 74,750 level, the uptrend would be vulnerable.
In Monday’s trading session, Sensex soared to an unprecedented high of 76,000, marking a historic moment for Indian investors. While India VIX stood at 23.19. However, amidst the celebration, there looms a question regarding the sustainability of this bullish trend.
“The day unfolded with cautious trading, anticipating heightened volatility in the near term, the market sentiment underscores a prevailing sense of caution,” says Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
