Sensex forms bullish candle
For trend following traders, 67,300 would be key level to watch out, above which it could move up till 68,000-68,100; On flip side, below 67,300, traders may prefer to exit out from trading long positions
image for illustrative purpose
Mumbai On the account of weekly expiry day, the benchmark indices continued the positive momentum, where the 30-share benchmark index BSE Sensex was up by 455 points.
Among sectors, except IT, all the major sectoral indices were traded in the green, whereas Pharma index rallied over 1.5 per cent. Technically, after a muted opening the index took the support near 66,800 levels and reversed. On daily charts, it has formed bullish candle and on intraday charts, it is holding higher bottom formation, which is largely positive. “However, the short-term texture of the market is overbought, hence we could see some profit booking at higher levels. For the trend following traders now, 67,300 would be the key level to watch out,” says Shrikant Chouhan of Kotak Securities.
Above the same, the market could move up till 68,000-68,100. On the flip side, below 67,300 traders may prefer to exit out from the trading long positions. Below the same, the index could retest the level of 66,800-66,600. Short-term traders should remain cautious and be very selective, as there is a risk to get trapped at higher levels.
