Sensex holds lower top formation on charts
For the bulls, 53,500 would be the key resistance level, above which it could move up to 53,800-54,000; on the flip side, 53,150 would be the key support zone
image for illustrative purpose
Mumbai: The benchmark indices witnessed a volatile trading session, after a roller coaster price action, BSE Sensex was down by 98 points. Among sectors, sharp recovery was seen in oil & gas and energy stocks whereas PSU Banks index lost the most, shed over two per cent.
Technically, the Sensex consistently trading below 53,500 and 50-day SMA (Simple Moving Average) mark which is broadly negative. In addition, on intraday charts, the index is holding lower top formation that also supports short term weakness.
"However, in last four days, the index corrected nearly 1,400 points and the intraday texture indicating strong possibility of quick pullback rally, if the index succeeds to close above 53,500 mark," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. For the bulls, 53,500 would be the key resistance level. Above which, the index could move up to 53,800-54,000. On the flip side, 53,150 would be the key support zone. Below which, the index could slip till 53,000-52,800.
