Reversal formation may continue
On last Tuesday, the benchmark indices bounced back sharply. NSE Nifty ended 151 points higher, while BSE Sensex was up by 600 points
image for illustrative purpose
Mumbai: On last Tuesday, the benchmark indices bounced back sharply. NSE Nifty ended 151 points higher, while BSE Sensex was up by 600 points. Among sectors, FMCG and PSU Banks rallied over one per cent whereas despite strong momentum Reality index shed over one percent.
Technically, after a gap-up opening the market held the positive momentum and it also cleared the short-term resistance of 61,000 which is broadly positive.
“We are of the view that, as long as the index is trading above 60,500 the reversal formation is likely to continue,” says Shrikant Chouhan of Kotak Securities. Above the same, the index could move up to 61,300-61,500, he said. On the flip side, below 60,500 uptrend would be vulnerable. below the same, the market could retest 60,200.
