Positive consolidation activity likely
Short-term market texture is robust, but mkt in overbought condition
image for illustrative purpose
Mumbai: On Wednesday, the benchmark indices bounced back sharply as BSE Sensex was up by 742 points. Among sectors, almost all the major sectoral indices were traded in the positive territory, but Reality index outperformed, rallied over 2.5 per cent.
Technically, post gap-up opening the index held the positive momentum throughout the day. The important point is after a long time it succeeds to trade above 50 day SMA (Simple Moving Average) which is largely positive.
“We are of the view that, the short-term market texture is robust, but due to temporary overbought conditions, we could see positive consolidation activity in the near future,” says Shrikant Chouhan of Kotak Securities.
For the bulls, 50 day SMA or 65,370 and 65,300 would act as a key supports zone while 66,000 and 66,100 would act as a crucial resistance zones. Buying on intraday corrections and sell on rallies would be the ideal strategy for the day traders. On the flip side below 50-day SMA or 65,300 uptrend would be vulnerable.
