Positive momentum above 71,600 level may continue

Mumbai: On Tuesday, the benchmark indices bounced back sharply as BSE Sensex was up by 454 points. Among sectors, IT index outperformed, rallied nearly three per cent. Despite strong market momentum intraday profit booking was seen in banking stocks. Technically, after early morning intraday correction the Nifty took the support near 71,600 and reversed sharply. From the day’s lowest point market rallied over 210 points.

On daily charts the index has formed bullish candle which supports further uptrend from the current levels. “We are of the view that as long as index is trading above 71,600 level, the positive momentum is likely to continue,” says Shrikant Chouhan, Head-Equity Research, Kotak Securities. Above the same the index could rally till 73,400, further upside may also continue which could lift the index till 73,700. On the flip side below 71,600, traders may prefer to exit out from the trading long position.