Charts supporting uptrend

Mumbai: On Wednesday, the benchmark indices continued positive momentum. After a stellar rally, BSE Sensex was up by 703 points. Among sectors, almost all the major sectoral indices were traded in the green, but auto and banking and financial stocks outperformed.

Technically, after a gap-up opening, NSE Nifty successfully cleared 66,500 mark and post breakout it intensified the positive momentum. A range breakout formation on intraday charts and bullish candle on daily charts are indicating further uptrend from the current levels.“We are of the view that, the current market texture is bullish, but due to temporary overbought conditions, we could see some profit booking at higher levels” says Shrikant Chauhan of Kotak Securities.

For the day traders now, buying on dips and sell on rallies would be the ideal strategy. In the near future, 67,200-67,300 would act as an immediate resistance zone while 66,500-66,400 could be the key supports zones for the traders.

The BSE Mid-cap and BSE Small-cap indices experienced a sustained rally as Sensex broke out of its consolidation range and BSE Bankex recovered from its losses

Rupak De, senior technical analyst at LKP Securities, says: “The relentless ascent in the mid-cap and small-cap segments propelled the respective indices into uncharted territory, where target prices would be determined using Fibonacci extension.” Sentiment remains bullish as the recent breakout in Sensex is bolstering the broader market, which appeared somewhat fragile or risky a few days ago. Going forward, the uptrend is likely to continue in the mid- and small-cap space, with periodic dips providing opportunities to buy in.