Charts indicating indecisive trading
The benchmark indices on Monday witnessed a range-bound trading session. BSE Sensex was up by 13 points. Among sectors, Reality index outperformed, rallied over four percent whereas intraday profit booking was seen in banking and financial stocks.
image for illustrative purpose
Mumbai: The benchmark indices on Monday witnessed a range-bound trading session. BSE Sensex was up by 13 points. Among sectors, Reality index outperformed, rallied over four percent whereas intraday profit booking was seen in banking and financial stocks. Technically, after a last week stellar rally the market witnessed some profit booking at higher levels.
On daily charts, the index has formed small inverted Hammer candlestick formation, which indicating indecisiveness between bulls and bears.
“We are of the view that, the short-term market texture is bullish, but due to temporary overbought conditions we could see some profit booking at higher levels,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
For the bulls, the 60,000-60,300 would act as an immediate resistance area, while 59,500-59,400 or 50-day SMA (Simple Moving Average) would act as a key support zones. Buying on intraday correction and sell on rallies would be the ideal strategy for the day traders.
