Range-bound activity may continue

Mumbai On Tuesday, the benchmark indices witnessed range-bound activity, NSE Nifty ends 30 points higher, while BSE Sensex was up by 180 points. Among sectors, IT continued the positive momentum, rallied over one percent whereas profit booking was seen in media and PSU banks stocks, as a result, both the indices shed over one per cent. Technically, after a strong uptrend rally the index witnessed range-bound activity. Intraday correction formation indicating range bound activity is likely to continue In the near future.

“We are of the view that, the 66,600 level could be the key support for the day traders. Below which, we could see a quick intraday correction till 66,400-66,300 points,” says Shrikant Chouhan of Kotak Securities.

On the flip side, as long as the index is trading above 66,600 level, the uptrend wave is likely to continue. Above the same, the index could rally till 66,900-67,000 points.

Vikram Kasat, head (advisory), Prabhudas Lilladher, says: “Today Sensex and Nifty continued their record-breaking rally on Tuesday, reaching new all-time high levels, amid fresh foreign fund inflows and buying in banking counters.” A positive trend in the US markets yesterday also contributed to the domestic benchmark indices optimism. The global market construct continues to be favourable for the bulls. Healthy consolidation can be the near-term trend, he added.