Profit booking likely at higher levels
For bulls now, 64,250 and 64,000 points will act as key support levels, while 65,000-65,300 would be the crucial resistance zone
image for illustrative purpose
Mumbai: On Friday, 30-share BSE Sensex registered a fresh all-time high of 64,718.56 points, following a promising uptrend rally, where it was up by 803.14 points. Among the sectors, almost all the major indices were traded in the green, but auto and pharma indices outperformed, where both the indices rallied by over 4 per cent.
Technically, after a range breakout, the index intensified the positive momentum, which is largely positive.In addition, a breakout continuation formation on daily charts and long bullish candle on weekly charts supports further uptrend from the current levels.
“We are of the view thatmarket texture is bullish but due to temporary overbought conditions, we could see profit booking at higher levels,” says Shrikant Chouhan of Kotak Securities.
For the trend following traders now, buy on intraday correction and sell on rallies would be the ideal strategy.
For the bulls, 64,250 and 64,000 points would act as key support zones, while 65,000-65,300 would be the crucial resistance zone.However, below 64,000 points traders may prefer to exit from long positions. For Bank Nifty, as long as it is trading above 44,300 points, the breakout texture is likely to continue. Above which, Bank Nifty could move up till 45,000-45,300 levels.
