Mkt steadily holds higher bottom formation
For the traders, 62,550 would be trend decider level and uptrend formation is likely to continue above the same till 63,000-63,300; On the flip side, below 62,550 uptrend would be vulnerable
image for illustrative purpose
On Tuesday, the benchmark indices continued the range bound activity, BSE Sensex closed at 62,792 points. Among sectors, Auto and Reality indices gained over one per cent, whereas IT index corrected sharply, shed over 1.7 per cent.
Technically, from the day lowest points the market bounced back sharply. In addition, the market is consistently holding higher bottom formation.
“For the traders now, the 62,550 would be the trend decider level. As long as the index is trading above the same the uptrend formation is likely to continue,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Above the same, the market could move up to 63,000-63,300 points. On the flip side, below 62,550 uptrend would be vulnerable. Below the same, the market could retest the level of 62,500pts. Further down side may also continue and it could drag the index till 62,400pts.
