Technical Charts Indicate Indecisiveness

Mumbai: On Monday, the benchmark indices witnessed an intraday profit booking at higher levels. BSE Sensex was down by 385 points. Among sectors, the Realty index gained the most, rallying over 3 per cent, while intraday profit booking was observed in selective Metal and IT stocks.

Technically, on daily charts, the index has formed a small bearish candle, indicating indecisiveness between the bulls and the bears. For day traders, 81500 and 81300 would be key support zones, while 82000-82200 could act as crucial resistance areas for the bulls. However, if the index falls below 81300, traders may prefer to exit their long positions.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We believe that the current market texture is non-directional, and the ideal strategy for day traders would be to buy on intraday corrections and sell on rallies.”

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Domestic equities took cues from Asian and European indices and ended negative, as investors await the outcome of the US FOMC meeting on rate decision later this week. Although a rate cut is on the cards, there is lack of confidence amongst the investors due to the sluggish Chinese economy and concerns ahead of Trump’s decision on import tariffs on key economies.”