Range-bound trading likely
image for illustrative purpose
Mumbai: The benchmark indices continued positive momentum second day in a row as NSE Nifty ends 119 points higher, while BSE Sensex was up by 380 points. Among sectors, reality and infra stocks witnessed buying interest whereas despite strong momentum profit booking were seen in PSU banks stocks.
Technically, after a long time the Nifty surpassed 20-day SMA (Simple Moving Average) and it also holding bullish continuation formation on daily and intraday charts, which is largely positive. “We are of the view that, the short-term texture of the market is bullish, but mildly overbought. Hence, we could see a range-bound activity in the near future. For the traders, buying on intraday corrections and sell on rallies would be the ideal strategy,” says Shrikant Chouhan of Kotak Securities.
For the bulls now, the 66,300-66,100 level would act as a crucial support zone, while the 66,600-66,800 level could be the key resistance area for the traders. However, below the 66,100 uptrend would be vulnerable.
