Pullback rally likely in oversold mkt
The 59,200 level could be the immediate trigger level, above which Sensex could move up to 59,500-59,650pts
image for illustrative purpose
Mumbai: On last Tuesday, the benchmark indices witnessed a volatile trading session. BSE Sensex was down by 326 points. Among sectors, Media index bounced back sharply, rallied over two per cent whereas Pharma, Oil and Gas indices shed over one per cent.
Technically, after a positive opening once again the index witnessed selling pressure at higher levels from the high point of the day, the Sensex trimmed 685 points.
“We are of the view that, the market texture is weak, but due to temporary oversold conditions we could see a one quick pullback rally from the current levels,” says Shirkant Chouhan, Head of Equity Research (Retail), Kotak Securities.
For the bulls now, the 59,200 level could be the immediate trigger level. Above which the index could move up to 59,500-59,650. On the flip side, as long as the index is trading below 59,200 the correction wave is likely to continue. Below the same, the Sensex could slip till 58,900-58,750.
