Sensex forms Long Leg Hammer
For traders 54,000-53,800 would act as key support zone, above which index could rally up to 54,600-54,850; on the flip side, below 16000/53800 uptrends would be vulnerable
image for illustrative purpose
Mumbai: On the last day of Monthly F&O expiry day, the benchmark indices witnessed volatile price action. Post roller coaster activity, the nifty ends 168 points higher, Sensex was up by 572 points. Among sectors, banking financial and Metal stocks bounce back sharply while some profit booking was seen in Energy and FMCG stocks.
Technically, after positive opening the Sensex broke the important level of 53,800 but eventually took the support near 53,450 and bounce back sharply. From the day lowest level, it rallied over 875 points.
"Further, on daily charts, it has formed long leg Hammer formation which supports further uptrend from the current levels. For the trend following traders, 54,000-53,800 would act key support zone," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Trading above the same, the index could rally up to 54,600-54,850. On the flip side, below 16000/53800 uptrends would be vulnerable. Below which, bulls may prefer to exit out from the trading long positions. Below 53,800 the index could retest the level of 53,500-53,400.
