Sensex in reversal formation

Mumbai: On Monday, the benchmark indices bounced back sharply after a promising intraday rally. BSE Sensex was up by 401 points. Among sectors, PSU Banks index gained the most, rallied over 2.5 per cent whereas despite strong market momentum Media index trimmed over one per cent.

Technically, on daily and intraday charts, the index has formed reversal formation and also formed reversal candle on daily charts which is largely positive.

“We are of the view that, the short-term market structure is turned to positive and for the bulls now, 59,900-59,700 would act as a key support zone,” says Shrikant Chouhan of Kotak Securities. Above which the index could retest the level of 60,300-60,500. On the flip side, below 59,700 traders may prefer to exit out from the trading long positions.