Short-term texture of market still positive

Mumbai: The benchmark indices continued a strong momentum fifth day in a row, the Sensex closed at 72,708. Among Sectors, Consumer and FMCG stocks witnessed buying interest whereas intraday profit booking were seen in selective Reality stocks.

Technically, on Monday, the Sensex closed at 72,708, but due to intraday profit booking at higher levels, it failed to close above 73,200. “However, the short-term texture of the market is still in to the positive side. For the trend following traders now, 72,900 would act as a key support level,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.

Above which, the Sensex could move up till 73,500-73,700. On the flip side, below 72,900 we could see a one quick intraday correction till 72,700. Further downside may also continue which could drag the market till 72,600. Contra traders can take a long bet near 72,600 with strict 120 points stop loss. Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Markets is following global positive cues and have continued with its upward bias, although indices pared gains towards fag-end due to select profit-taking.” It has been moving in a range-bound trend with a positive bias as investors are cautiously optimistic given the global macro-economic challenges and geo-political tensions.”