Sensex to see rangebound activity
The strategy should be to sell short at 60,700 and place a stop loss at 61,000.
image for illustrative purpose
Mumbai: On the weekly close of index options, Sensex fell over 300 points. We saw some recovery in inancials, capital goods and FMCG stocks. However, the technology sector remained weak.
The market completed the first phase of the corrective pattern at 60,050 and reversed back sharply. It was oversold before rebounding from major lows.
"As we can see, the stocks have also fallen to extreme levels in recent times, continuing upward trend is more likely toward 60,350 or 60,700 levels. Markets are still in a range and we would see range bound activity in the market until the Sensex crosses 61,000 or breaks 59,750," says Shrikant Chauhan, Head of Equity Research (Retail) of Kotak Securities.
The strategy should be to sell short at 60,700 and place a stop loss at 61,000. On the downside, buying is advised between 60,150 and 60,050. Place stop loss at 59,750.
