Sensex forms Double Top formation
image for illustrative purpose
Mumbai On last Thursday, the benchmark indices witnessed selling pressure at higher levels as BSE Sensex was up by 165 points. Among sectors, IT and Digital indices gained the most whereas PSU Bank index corrected sharply shed over two per cent. Technically, after a gap-up opening, the index registered a fresh all time high of 66,064.21 points, but due to profit booking at higher levels it trimmed some intraday gain.
In addition, on intraday charts, the index has formed Double Top formation and it also formed bearish candle on daily charts.
“We are of the view that, the current market texture is non-directional and for the bulls now, 66,000 would be the immediate breakout level. Above the same, the market could rally till 66,200-66,300,” says Shrikant Chouhan of Kotak Securities.
On the flip side, below 65,500 the selling pressure is likely to accelerate. Below which, the index could retest the level of 65,300-65,150.
