Further uptrend likely

Mumbai, Sep 06 On last Wednesday, the benchmark indices witnessed volatile trading session, after a roller coaster activity the nifty ends 36 points higher while the Sensex was up by 100 points.

Among Sectors, buying interest were seen in Pharma and FMCG stocks whereas selective PSU Banks and Reality stocks registered profit booking at higher levels.

“Technically, after intraday correction, the index took the support near 65,500 and bounce back sharply. A promising intraday reversal formation indicating strong possibility of further uptrend from the current levels,” says Shrikant Chouhan of Kotak Securities. For the trend following traders now, 65,750 would be the trend decider level. Above which, the Sensex could rally till 66,200-66,300. On the flip side, fresh selling pressure possible only after dismissal of 65,750 below the same, the index could slip till 65,500-65400.

Vinod Nair, Head of Research at Geojit Financial Services, says, ”A spike in crude oil reverberated across the globe, reviving concerns about inflation and sparking fears of a Fed rate hike. This led to a surge in US bond yields, causing investors to shift towards the safety of bonds and reversing the buying trend of foreign investors in the domestic market.”

Nevertheless, the resilience of the domestic markets shone through as investors placed their bets on an improved outlook, ultimately helping the market recover from the initial shock.