Level based trading ideal
Positive sentiment likely to continue as long as the index holds 66,700
image for illustrative purpose
Mumbai On Wednesday, the benchmark indices witnessed a pullback rally, where the 30-share benchmark index BSE Sensex was up by 351 points. Among sectors, almost all the major sectoral indices were traded in the green, but PSU Bank index outperformed, rallied over 1.25 per cent.
Technically, after short-term correction on Tuesday, the index opened with a gap up, but after early morning rally, it witnessed range bound activity throughout the day. “We are of the view that, as long as the index is holding 66,700 level, the positive sentiment is likely to continue” says Shrikant Chouhan of Kotak Securities. On the flip side, below 66,500 points, the selling pressure is likely to accelerate. Below the same, the market could retest the level of 66,200-66,100. The current market texture is volatile, hence level based trading would be the ideal strategy for the day traders.
Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Markets exhibited resilience ahead of the all-important Fed policy announcements and Powell’s presser.” As expected, the benchmark Nifty rebounded sharply higher–marching higher from strength-to-strength taking in its stride the expected 25 basis points interest rate hike from the US Federal Reserve, he said. Other positive catalysts such as renewed FII buying, upbeat results from L&T and Tata Motors, and overnight gains in the US markets provided strength to markets.
