Sensex forms bullish candle

Mumbai: The benchmark indices continued the positive momentum as BSE Sensex was up by 306 points. Among sectors, all the major sectoral indices were traded in the green, but IT index outperformed, rallied over three per cent.

Technically, after early morning intraday correction the market took the support near 65,500 and bounced back sharply. On daily charts, the index has formed bullish candle and on intraday charts it is holding uptrend continuation formation which is largely positive.

“We are of the view that, the current market texture is bullish, but in overbought zone. Hence, buying on dips and selling on rallies would be the ideal strategy for the day traders. For the bulls, 65,800-65,500 would act as a key supports levels, while 67,000-67,300 could act as an important resistance zone,” says Shrikant Chouhan of Kotak Securities.

On the flip side, below 65,500 traders may prefer to exit out from the trading long positions.

Prashanth Tapse, research analyst and sr V-P (research), Mehta Equities, says: “Although key indices pared gains towards the closing hour, markets continued its upward bias due to upsurge in IT and realty stocks. Moderating inflation in the US could be signaling that the Federal Reserve may be done with rate hikes, which is good for global markets.”

Further, domestic economic numbers like exports have shown signs of recovery, which has further boosted the market sentiment and has triggered renewed buying interest in recent sessions.