Range-bound trading in near future
image for illustrative purpose
Mumbai: Benchmark indices maintained their winning streak, but the sharp intra-day gyration shows that the rally could be losing steam given the continuous upward movement over the past week or so.
The market seems to be in an overbought zone and profit-taking could emerge in the next few sessions.
Technically, the market is trading above 50 and 200-day SMA (Simple Moving Average) and on intraday charts it is holding a higher bottom formation which is largely positive.
“However, momentum indicators are indicating temporary overbought conditions and due to this we could see range bound activity in the near future,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. For the bulls now, 60,100-5,800 would be the key support areas while 60,00-61,000 would act as a crucial resistance zone for the traders.
