Sensex forms Double Top formation
Charts indicating further weakness from current level
image for illustrative purpose
Mumbai: The benchmark indices witnessed lackluster activity as BSE Sensex closed at 60,978 points. Among sectors, uptrend rally continued in auto stocks as a result Auto index rallied over one per cent, whereas PSU Bank and Reality indices lost the most, both the indices trimmed over one per cent. Technically, the index consistently taking resistance near 61300 and it also formed Double Top formation on intraday charts which is broadly negative. In addition, the index has formed small bearish candle that also indicating further weakness from the current levels.
"We are of the view that, the current market texture is non-directional perhaps traders are waiting for either side breakout," says Shrikant Chauhan of Kotak Securities.
For the bulls 61300 would be the fresh breakout level. Above which, the index could move up to 61800-62000.
On the flip side 60750 or 20-day SMA would be the sacrosanct support zone. Below the same, we could expect quick intraday selloff and the index could slip till 60200 level.
