Sensex re-claims 200day SMA level
Charts indicating carry of uptrend formation in the near future; 57,300 would act as a trend decider level, above which Sensex could rally till 57,900-58,100; below which strong possibility of quick intraday correction till 57,000-56,800 is not ruled out
image for illustrative purpose
Mumbai: The market witnessed a promising pullback rally. BSE Sensex was up by 701 points. On Thursday, after an early morning intraday correction, the index took the support near 56,950 and bounce back sharply. From the day lowest level, it rallied over 840 points. Among Sectors, almost all the major sectoral indices were traded in the green but FMCG index gained the most, rallied over 2 per cent.
Technically, Sensex re-claimed the level of 200day SMA. It also formed long bullish candle on daily charts which indicating continuation of uptrend formation in the near future.
"For the trend following traders, now 200 day SMA or 57,300 would act as a trend decider level. Above the same, the Sensex could rally till 57,900-58,100," says says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the flip side, below 57,300 uptrends would be vulnerable. Below which strong possibility of quick intraday correction till 57,000-56,800 is not ruled out.
The Sensex advanced 701.67 points, or 1.23 per cent, to 57,521.06 after beginning in the green on April 28. About 1594 shares have increased in value, 1729 shares have decreased in value, and 104 shares have remained steady. FMCG, electricity, auto, and capital goods all gained 1-2 percent, while the midcap and small-cap indexes also finished higher. Various companies positive quarterly result can lead a market to lift in tomorrow's session.
