Markets in non-directional mode
image for illustrative purpose
The benchmark indices on Tuesday witnessed profit booking at higher levels. BSE Sensex was up by 18 points. Among sectors, Metal index continued to be outperformed, rallied over 2.5 per cent whereas selective IT stocks registered profit booking at higher levels.
Today, after a gap-up opening, the market took the resistance near 62,250 and in the second half due to intraday profit booking it corrected sharply.
However, the short-term formation is still in to the bullish side. Technically, On daily charts, the index has formed Hammer candlestick reversal formation which indicates strong possibility of temporary weakness.
“We are of the view that, the short-term market texture is non-directional and level based trading would be the ideal strategy for the day traders,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
For the traders now, 61,800 would act as a sacrosanct support zone. Above which, the positive sentiment is likely to continue. Above which, the index could move up till 62,300-62,500.
On the flip side, below 61,800 the selling pressure is likely to accelerate. Below the same, the nifty could slip till 61,500-61,400.
“We are of the view that, the short term market texture is non-directional and level based trading would be the ideal strategy for the day traders,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
