Sensex forms long bearish candle
Intraday formation also indicating weak sentiment and it’s likely to continue in the near future
image for illustrative purpose
Mumbai: On the day of weekly expiry day, the benchmark indices correctedsharply, BSE Sensex was down by 541 points. Among sectors, Auto and Reality indices corrected over one per centwhere as despite weak sentiment some buying was seen in selective metal stocks.
Technically, on daily charts, the index has formed long bearish candle, which supports further weakness from the current levels. In addition, the intraday formation also indicating weak sentiment is likely to continue in the near future.
“For the bulls now, the 60,000 would act as an immediate resistance zone. Below the same, the index could slip till 59,500-59,300. On the flipside, above 60,000 minor intraday pullback rally possible till 60,150-60,200. We are of the view that, as long as the index is trading above 60,200 or 20-day SMA (Simple Moving Average) the uptrend formation is likely to continue,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
