Maintain a bullish bias on tech stocks
image for illustrative purpose
Mumbai: After opening on the high side, the market suddenly changed its mood and closed at the lowest point of the day and week. It was expected that bond yields would go up after the announcement of the passage of the stimulus bill, but the pace was faster than expected, leading to crash landings in Indian markets.
The Sensex was hit hard. With 52,561 levels not crossed, the Indian market has once again come to the lower support. The 50,150 could be a decisive support and if it breaks, the Sensex could move closer to 49,500 or 49,000.
"It seems difficult to get out of weakness immediately. However, if Indices hold above 51,250 levels, we can see an upward activity," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.
Maintain a bullish bias on technology stocks. Sensex has formed the bearish hammer with a lower high formation in the weekly chart, it is advisable to reduce weak long positions at resistance levels. Buying is advisable in select companies on dips 49,000, he added.
