Time for level-based trading
For the traders, 52,700 could be the key support level and 53,300 would act as an important resistance zone; below 52,700 level the index could slip up to 52,400-52,200
image for illustrative purpose
Mumbai: On Thursday, the market has shown own strength, irrespective of Dow and Nasdaq down with good numbers. The benchmark indices continued a narrow range activity. On the day of monthly expiry, BSE Sensex was down by 8 points. Among Sectors, Metal index corrected sharply, shed over 1.5 per cent while some buying was seen in Energy and selective Banking stocks.
"Technically, from the last three days the market has been witnessing non directional activity. For the traders, now 52,700 could be the key support level and 53,300 would act as an important resistance zone," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the flip side, below 52,700 level the index could slip up to 52,400-52,200. On the higher side, fresh uptrend rally possible only after 53,300 range breakout. Above which, the index could move up to 53,600-53,800.
The market texture is non directional. Hence, level-based trading would be the ideal strategy for the day traders.
