Market holds uptrend formation
Upside movement may continue till 61,500pts; On the flip side, uptrends below 60,500 would be vulnerable; Below the same level, traders may exit long positions
image for illustrative purpose
Mumbai: The benchmark indices continued the positive momentum for two sessions in a row as BSE Sensex was up by 368 points. Among sectors, Metal index outperformed and rallied over four per cent whereas FMCG and pharma stocks witnessed some profit booking at higher levels.
Technically, after a promising reversal formation the market held the uptrend formation throughout the day. The higher bottom intraday formation is indicating continuation of pullback rally in the near future.
"For the trend following traders now, 60,500 would act as a sacrosanct support level, above which the index could move up to 50 day SMA (Simple Moving Average) or 61,300," says Shrikant Chouhan, head of Equity Research (Retail), Kotak Securities.
Further upside may also continue which could lift the index till 61,500. On the flip side, uptrends below 60,500 would be vulnerable. Below the same level, traders may prefer to exit the trading long positions.
