Sensex forms Hammer candlestick
Short-term support has shifted to 59,400 from 58,800, a dismissal of 59,400 could accelerate the selling pressure; below 59,400 the chances of hitting 59,000-58,800 would turn bright
image for illustrative purpose
Mumbai: Among sectors, all the major sectoral indices traded in the green, but Pharma and Healthcare indices outperformed, rallied over three per cent. Technically, after a last Monday sharp reversal formation on Tuesday, the index opened with a gap up, but after a strong opening, in the late afternoon it witnessed some profit booking at higher levels.
In addition, near 20 day SMA (Simple Moving Average) the index has formed Hammer candlestick formation which is broadly negative for the market.
"We are of the view that, the short term support has shifted to 59,400 from 58,800. A dismissal of 59,400 could accelerate the selling pressure," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
As a result, below 59,400 the chances of hitting 59,000-58,800 would turn bright. On the flip side, above 59,400 the index could retest the level of 60,000-60,300.
