Range-bound trading as mkt in overbought zone
60,350 and 60,000 would act as key support levels, while 60,800-61,000 would be the key resistance area for the bulls, below 60,000 uptrend would be vulnerable
image for illustrative purpose
Mumbai: After a strong intraday session, BSE Sensex was up by 455 points. Among sectors, most of the major sectoral indices were traded in the green but Metal index outperformed, rallied over 1.20 per cent.
Technically, the index successfully cleared the short-term resistance of 60,350 and succeeds to close above the same which is broadly positive. In addition, on daily and intraday charts, it is holding uptrend continuation formation which support further uptrend from the current levels.
"We are of the view that, the short-term texture of the market is in to the bullish side, but due to temporary overbought conditions we could witness range-bound activity. Hence, buying on intraday corrections and sell on rallies would be the ideal strategy for the short term trades," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
For Sensex, 60,350 and 60,000 would act as a key support levels, while 60,800-61,000 would be the key resistance area for the bulls. Below 60,000 uptrend would be vulnerable, below the same the index could slip till 59,700-59,500.
