Sensex forms small Hammer candle
As long as index trades above 53,700, the short term uptrend formation is intact; traders may prefer to exit out from trading long positions, if the index succeeds to trade below 53,700
image for illustrative purpose
Mumbai: The benchmark indices continued positive momentum, BSE Sensex was up by 427 points. Among Sectors, almost all the major sectoral indices were traded in the green but PSU Banks and Metal indices outperformed, rallied over three per cent.
Technically, after a promising pullback rally the Nifty is comfortably trading above 53,700 mark which is broadly positive. However, post strong uptrend rally, on daily charts, the market has formed small Hammer candle, which indicating strong possibility of intraday correction.
"We are of the view that, as long as the index is trading above 53,700 mark, the short-term uptrend formation is intact. Above 53,700, the index could hit the level of 54,500-54,700," says Shrikant Chouhan, head (equity research-retail), Kotak Securities.
On the flip side, traders may prefer to exit out from trading long positions, if the index succeeds to trade below 53,700. Below which it could retest the level of 53,500-53,400.
