Sensex forms small bearish candle
58,700 would be sacrosanct support zone for index, above which, it could move up to 59,400-59,700 in the near future; On the flip side, below 58,700, uptrend would be vulnerable
image for illustrative purpose
Mumbai: The benchmark indices registered profit booking at higher levels, after a gap-up opening the BSE Sensex was up by 170 points. Among sectors, intraday profit booking was seen in IT and metal stocks whereas positive momentum continued in oil and gas and reality stocks.
Technically, once again the index opened with a gap up, but due to temporary overbought intraday conditions it witnessed profit booking at higher levels. The index also formed small bearish candle on daily charts.
However, the short-term texture of the market is still in to the positive side. For the traders now buying on intraday corrections and sell on rallies would be the ideal strategy.
"We are of the view that 58,700 would be the sacrosanct support zone for the index, if the index succeeds to trade above the same, it could move up to 59,400-59,700 in the near future," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. On the flip side, below 58,700, uptrend would be vulnerable.
