Sensex forms lower top formation
image for illustrative purpose
On the weekly expiry day, the benchmark indices witnessed profit booking at higher levels as BSE Sensex was down by 129 points.
Among sectors, Reality index lost the most, shed over two per cent whereas some buying was seen in selective private banking stocks. Technically, after a gap-up opening, the index consistently faced selling pressure at higher level. The index has formed lower top formation on intraday charts and it also formed bearish candle on daily charts which is broadly negative.
“We are of the view that, the market texture is weak and the 20-day SMA (Simple Moving Average) or 61,100 would be the immediate support zone for the bulls,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the flip side, the 18,200 level could act as an immediate resistance zone for the traders. Above the 61,600points, the Sensex could retest the level of 62,000-62,100 range.
