Positive trend likely above 62,400pts

On the backdrop of weak global sentiments, the benchmark indices witnessed profit booking at higher levels as BSE Sensex was down by 347 points. Among sectors, the profit book was seen at energy, oil and gas stocks, whereas some buying interest were seen in digital and selective pharma stocks.

Technically, on daily charts the index has formed reversal formation, which is largely negative. However, after intraday sell off, the index took the support near 62,400 and bounced back sharply.

“We are of the view that, as long as the market is holding 62,400, the positive sentiment is likely to continue,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Above the same, the market could move up till 62,900-63,000. On the flip side, a fresh sell off possible only after dismissal of 62,400 points. Below which, the index could slip till 62,100-62,000 points.

Vinod Nair, head (research) at Geojit Financial Services, says: “As indicated by multiple economic data points, the Indian economy is presently experiencing a robust recovery, leading to an upward trend in domestic equity markets.”

However, the rally is being hindered at times due to negative signals from global peers, as observed on Wednesday, he added. Concerns about a recession and potential interest rate hikes in western markets are impacting the domestic market, but it is nevertheless maintaining the outperformance.