Range-bound trading in overbought zone
The 61,000-60,800 would be the key supports zone, while 61,500- 61,700 would act as an immediate hurdle for the bulls
image for illustrative purpose
Mumbai: On last Monday, the benchmark indices continued positive momentum, BSE Sensex was up by 242 points. Among sectors, buying was seen in metal, energy and oil and gas stocks whereas Pharma index witnessed intraday booking at higher levels. Technically, after a gap up opening the index witnessed range-bound activity at higher levels.
On daily charts, the index has formed small candle, while on intraday charts it is still holding higher bottom formation which is broadly positive.
“We are of the view that, the market texture is bullish, but mildly overbought. Hence, we could see range-bound activity in the near future,” says Shrikant Chouhan of Kotak Securities.
For traders now, buying on intraday corrections and sell on rallies would be the ideal strategy. In the near future, the 61,000-60,800 would be the key supports zone, while 61,500- 61,700 would act as an immediate hurdle for the bulls. However, below 60,800pts, an uptrend would be vulnerable.
