Sensex forms bullish candle
For bulls, 62,900pts would act as a sacrosanct support zone, above which positive rally likely to continue till 63,500-63,700 level; below 62,900pts uptrend would be vulnerable
image for illustrative purpose
The benchmark index BSE Sensex bounced back sharply on Tuesday as it gained by 418 points. Among sectors, Reality index was the top gainer, rallied over 2.5 per cent. Despite strong momentum, selective auto stocks witnessed intraday profit booking at higher levels. Technically, after a short-term correction, the index formed reversal formation and it also formed bullish candle on daily charts, which is largely positive.
“For the bulls now, 62,900pts would act as a sacrosanct support zone,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
As long as the index is trading above the same, the positive sentiment is likely to continue. Above which, the index could rally till 63,500-63,700 level. However, below 62,900pts uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.
