Short-term market texture still sluggish
But pullback rally may continue if the index succeeds to trade above 59,700pts
image for illustrative purpose
Mumbai: On the day of weekly expiry day, the benchmark indices witnessed a narrow range activity as BSE Sensex closed at 59,932 points. Among sectors, metal and IT stocks outperformed whereas Metal index corrected sharply, shed over four per cent.
Technically, after Wednesday's sharp fall, the market hovered between 59,250-60,000 price range. It also formed inside body candle on daily charts which indicating continuation of range bound activity in the near future. "We are of the view that, the short-term market texture is still in to the weak side, but pullback rally is likely to continue, if the index succeeds to trade above 59,700," says Shrikant Chauhan of Kotak Securities.
Above the same, it could move up to 60,300-60,400. On the flip side, fresh selloff possible only after dismissal of 59,700 level, below which, the index could retest the level of 58,900-58,800.
