Sensex holds lower top formation
54,200 would be the key level, strong possibility of one more quick intraday correction is likely below 54,200; fresh pullback rally possible only after 54,500 intraday breakouts
image for illustrative purpose
Mumbai: The benchmark indices registered volatile trading session, after a roller-coaster momentum where BSE Sensex was down by 105 points. Among sectors, Metal index lost the most, shed over 5 per cent, whereas some buying was seen in selective banking and FMCG stocks.
"Technically after muted opening, market witnessed intraday recovery, but one more time it took the resistance near 55,000 and corrected sharply. In addition, on intraday charts, the index is still holding lower top formation which is broadly negative for the market," says Shrikant Chouhan, head (equity research-retail), Kotak Securities.
For the traders, 54,200 would be the key level to watch out, strong possibility of one more quick intraday correction is not ruled out, if index succeed to trade below 54,200 points, below which the Sensex could touch the level of 54,000-53,700. On the flip side, fresh pullback rally possible only after 54,500 intraday breakouts. Above the same, the index would retest the level of 55,000-55,200.
