Pullback rally may continue
On Monday, the benchmark indices witnessed a promising pullback rally, NSE nifty ends 151 points higher, while BSE Sensex was up by 468 points. Among sectors, FMCG and auto stocks bounce back sharply whereas profit booking was seen in selective IT stocks.
image for illustrative purpose
Mumbai: On Monday, the benchmark indices witnessed a promising pullback rally, NSE nifty ends 151 points higher, while BSE Sensex was up by 468 points. Among sectors, FMCG and auto stocks bounce back sharply whereas profit booking was seen in selective IT stocks.
Technically, after muted opened the index took the support near 61,250 and reversed sharply. Post intraday reversal formation index held the positive momentum throughout the day. However, the short-term formation is still in to the weak side.
"We are of the view that, as long as index is holding 61,500, the pullback rally is likely to continue. Above the same, the index could move up to 62,100-62,300 or 20 day SMA" says Shrikant Chouhan, head of Equity Research (Retail), Kotak Securities.
On the flip side, below 61,500 uptrend would be vulnerable below the same, the index could slip till 61,250-61,000 or 50 day SMA (Simple Moving Average).
