Sensex forms small bearish candle

Mumbai On Tuesday, the benchmark indices witnessed range bound activity, where the 30-share benchmark index BSE Sensex was down by 68 points. Among sectors, IT and Digital indices rallied by over 1 per cent, whereas Reality index shed over 1.5 per cent.

Technically, after a promising reversal formation on Tuesday, the market opened with a positive note. But after a strong opening, it witnessed profit booking at higher levels. On daily chart, the index has formed small bearish candle, which indicates indecisiveness between the bulls and bears.

“We are of the view that, below 66,380 points, the market could retest the level of 66,100-66,000,” says Shrikant Chouhan of Kotak Securities. On the flip side, fresh uptrend rally possible only after dismissal of 66,700 points. Above the same, the index could rally till 66,900-67,000.

Prashanth Tapse, Senior VP (Research), Mehta Equities says, “It was an uninspiring session for the bulls as the benchmarks struggled for direction in a choppy session. Risk aversion was the preferred theme. Despite the range-bound session, India’s economic readings remained buoyant as GST collections for the month of July rose 11 per cent year on year to Rs1.65 trillion.”