Range-bound activity likely

Mumbai: On Thursday, the benchmark indices witnessed lackluster activity as BSE Sensex was down by 132 points. Among sectors, Energy and Media indices rallied over one per cent whereas intraday profit booking were seen in FMCG and metal stocks.

Technically, after a promising uptrend rally the benchmark indices witnessed range-bound activity at higher levels.

“On daily charts, the index has formed small candle, which indicates range-bound activity is likely to continue in the near future,” says Shrikant Chouhan of Kotak Securities.

For the traders, the 69,200-69,000 range would be the key supports zone, while 69,800-69,900 could act as key resistance areas.

However, below 69,000 points, the uptrend would be vulnerable. Below which traders may prefer to exit out from the trading long positions.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Markets finally snapped a 7-day winning streak as weak global cues fuelled selective profit-taking in domestic stocks after the recent upsurge. Investors preferred to book some profit in some richly valued stocks ahead of monetary policy announcement on Friday.” Despite today’s weakness the market undertone remains bullish on the back of revival in FII flows and rising hopes that the US Fed may not tinker with rates amid moderating inflation and growth.