Range bound trading likely
Current market structure is still positive, but mildly overbought
image for illustrative purpose
Mumbai: The benchmark indices continued positive momentum for third day in a row as BSE Sensex was up by 44 points. Among sectors, positive sentiment continued in IT, reality and metal stocks whereas banking and financial stocks witnessed some profit booking at higher levels.
Technically, after a gap-up opening, the index took the resistance near 61,700 and due to intraday profit booking it registered intraday correction. The current market structure is still positive, but mildly overbought.
A small bearish candle on daily charts indicating range bound activity in the near future. Hence, buying on dips and sell on rallies would be the ideal strategy for the day traders.
“For the bulls now, the 61,150-61,000 would act as a key support zone, while 61,700-61,900 would be the crucial resistance zone,” says Shrikant Chouhan of Kitak Securities. However, below 61,000 up-trend would be vulnerable.
