Pullback Formation May Continue To 74,500-74,800

Mumbai: On Thursday, the benchmark indices continued their positive momentum, BSE Sensex was up by 610 points. Among sectors, the Oil & Gas and Metal indices rallied over two per cent, whereas intraday profit booking was observed in IT and Realty stocks. Technically, after an early morning intraday sell-off, the market found support near 73,500 and bounced back sharply, which is largely positive. Additionally, on the intraday charts, the market is maintaining an uptrend continuation formation, supporting further upward movement from the current levels.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “For day traders now, 73,500 will act as a crucial support zone. Above this level, the pullback formation is likely to continue until 74,500-74,800.”

Conversely, if the market falls below 73,500, the uptrend would become vulnerable, and traders may prefer to exit their long positions.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “The recovery is because of the incessant fall markets witnessed over the past few weeks and some of the stocks from several sectors have become attractive as their business fundamentals remain strong.”

Rajesh Sinha, research analyst, Bonanza, said: “However, the recovery could face disruptions as Trump’s tariff statements will continue to make investors nervous and trigger selling going ahead.”