Sensex set to move above 73,500 in near term

Mumbai: The market made a smart comeback from an intraday low of 72,081 points. The rally was so strong that it crossed all the important levels without any major effort. Technology, CPSE and auto shares boosted sentiment, while Bank Nifty failed to enter the positive zone despite recovery from lower levels. Nifty has formed a bullish reversal on the daily chart. Sensex is set to move above 73,500 in the near term. However, on an immediate basis, the 73,450 level will be the biggest hurdle.

“The strategy should be to buy on dips to 72,500-72,700 with a stop loss at 72,200 levels. A close above 73,450 can make it easier to move towards 73,500-71,900 range,” says Shrikant Chouhan, head (equity research), Kotak Securities. Below 72,200, the Sensex may weaken to 72,100-71,900 level. The 47,100 would be the next big hurdle for Bank Nifty and dismissing it can go towards 4,400 and 48,000 level. If Bank Nifty closes below 46,700 points, then it could see weakness.