Some profit booking possible at higher levels

Mumbai: The benchmark indices continued positive momentum for fourth day in a row with Sensex going up by 702 points. Among sectors, all the major sectoral indices were traded in positive note but PSU Bank index outperformed, rallied over 2 percent.

Technically, post gap-up opening the market registered a fresh all time high of 72,119.85. A bullish candle on daily charts and breakout formation on intraday charts supports further uptrend from the current levels. “We are of the view that, the current market texture is bullish but due to temporary overbought conditions, we could see some profit booking at higher levels,” says ShrikantChouhan, Head – Equity Research, Kotak Securities.

For the trend following traders now, 71,700 would act as a key support level. Above the same, the uptrend texture is likely to continue. Above which, the market could hit the level of 72,250-72,400.

On the flip side, below 71,700, uptrend would be vulnerable. Below the same, traders may prefer to exit from the trading long positions.

PrashanthTapse, Senior VP (Research), Mehta Equities says, “Strong global market undercurrent coupled with India’s robust macro performance in past few quarters gave investors ample ammunition to go ballistic on India’s equities as Sensex reached a new milestone level of 72k mark led by gains in banking, auto and metal stocks.” The rally came despite worries over the ongoing conflict at Gaza and attacks on ships at Red sea, while hopes of rate cuts in the US next year and receding worries of recession in developed economies going ahead dictated the optimistic mood.