Charts suggest a quick intraday correction
53,400 and 53,500 would act as an immediate resistance levels. Below the same the correction wave is likely to continue till 52,900-52,700; on the flip side, above 53,500 breakout the index could move up to 53,800
image for illustrative purpose
Mumbai: The benchmark indices continued the positive momentum third day in a row. BSE Sensex was up by 433 points. Among sectors, almost all the major sectoral indices were traded in the green but IT index outperformed, rallied over 2 per cent.
Technically, after a gap-up opening the index has formed small bearish candle, which suggesting narrow range activity is likely to continue in the near future. Currently, the market is trading near important resistance level. The texture of the chart is suggesting a strong possibility of one quick intraday correction from the current levels.
"For the day traders, 53,400 and 53,500 would act as an immediate resistance levels. Below the same the correction wave is likely to continue till 52,900-52,700," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the flip side, above 53,500 breakout the index could move up to 53,800. Contra traders can take a long bet near 52,700 with strict 52,580 support stop loss.
