Sensex likely to witness fresh pullback rally
For the traders, 55,000 would act as a strong support level, above which it could touch 55,800-56,000; below 55,000, uptrend would be vulnerable
image for illustrative purpose
Mumbai: As profit booking continued at higher levels, the benchmark index, the Sensex was down by 113 points. Among sectors, most of the major sectoral indices witnessed selling pressure at higher levels but Reality and IT lost the most, shed over 1 per cent.
"Technically, one more time the index took the resistance near 55,800. Lower top formation on intraday charts and bearish candle on daily charts indicating strong possibility of further weakness form the current levels.
For the traders, 55,000 would act as a strong support level, strong possibility of fresh pullback rally is not ruled out if the index succeed to trade above the same.
Above which, it could touch the level of 55,800-56,000. On the flip side, below 55,000 uptrend would be vulnerable. Below 55,000 chances of hitting 54,700-54600 would turn bright," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
