Sensex forming higher bottom formation
Below 65,500pts, benchmark index could slip till 65,300-65,250
image for illustrative purpose
Mumbai: The benchmark indices on Tuesday continued positive momentum for three sessions in a row as BSE Sensex was up by 152 points. Among sectors, Media index was the top gainer, rallied over three per cent whereas intraday profit booking were seen in banking and selective auto stocks.
“Technically, after a sharp reversal the index is comfortably trading above 50 and 20-day SMA (Simple Moving Average) and on intraday charts it has consistently forming higher bottom formation, which is largely positive. For the trend-following traders now, the 65,500 would be the sacrosanct support zone,” says Shrikant Chauhan of Kotak Securities.
Above the same, the index could move up till 66,000-66,100. On the flip side, below 65,500 bulls may prefer to exit out from the trading long positions. Below 65,500 the index could slip till 65,300-65,250. Conversely, the weak Chinese service PMI has cast a shadow on hopes of an economic rebound in China, impacting global market sentiments.
