Profit booking possible at higher levels in mkts
Buying on dips and sell on rallies would be the ideal strategy
image for illustrative purpose
Mumbai: This week, the benchmark indices witnessed promising uptrend rally with Sensex zooming by 492 points. Among sectors, all the sectoral indices were traded in the green but oil and gas index outperformed, rallied over 4 per cent.
During the week, the successfully cleared the short-term resistance of 66,900 and post breakout it intensified the positive momentum. On weekly charts, it has formed long bullish candle and on intraday charts, it is holding higher high and higher low series formation, which is largely positive.
“However, the intraday texture is overbought. Hence, in the near future we could see some profit booking at higher levels. For the trend following traders now, 67,000 and 66,700 would act as a key supports zone while 67700-68100 could act as a key resistance zones for the traders,” says Amol Athawale, Vice President - Technical Research, Kotak Securities.
Buying on dips and sell on rallies would be the ideal strategy for the short term traders. For Bank nifty now, 44250 and 44,,000 could be the sacrosanct support zones, above which it could rally till 45,300-45,500.
