Further fall likely
52,350-52,500 level is the key resistence for now; a close below 51,600 will further lead to 50,700 or 50,500 level
image for illustrative purpose
Mumbai: On Thursday, finally BSE Sensex dismissed the key support of 52,350 which the market has held since the month of March. It was a decisive dismissal, that too on the day of the big event, thus inviting a pattern of further weakness in the medium term.
As soon as the market closes below the level of 51,600, it will fall to 50,700 or 50,500 in the near term. On the other hand, earlier support 52,350-52,500 has now become resistance to the market.
"The strategy should be short trade if Sensex bounces to given levels and place stop loss at 52,750 or buy Sensex if it drops to 50,700-50,500 level with a stop loss at 50,300," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
