Traders waiting for either side breakout
During the week, Sensex registered a fresh all time high of 72,561.91 but due to profit booking at higher levels it failed to sustain above 72,500
image for illustrative purpose
Mumbai: In the last day of week, the benchmark indices witnessed volatile activity, after a roller coaster momentum the Sensex closed at 72,026. Among Sectors, Reality index outperformed rallied over 7.5 per cent whereas profit booking were seen in IT, Metal and Auto stocks.
During the week, Sensex registered a fresh all time high of 72,561.91 but due to profit booking at higher levels it failed to sustain above 72,500. Technically, the market consistently facing resistance near 72,500 and on weekly charts, it also formed Doji candlestick formation which suggesting indecisiveness between the bulls and the bears. Amol Athawale, VP- Technical Research, Kotak Securities, said: “We are of the view that, current market texture is non-directional. Perhaps traders are waiting for the either side breakout.”
For the bulls now, 72,500 would act as an immediate breakout level, above which, the index could rally up to 73,000-73,200. On the flip side, below 71,700 selling pressure is likely to accelerate, below the same, it could slip till 71,400-71,200. For Bank Nifty, 47,500 would act as a sacrosanct support level, if it sustained above the same, then it could rally till 48,500-48,800. On the flip side, below 47500 uptrend would be vulnerable. Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Buying in select frontline stocks helped markets end in positive territory for a second straight session as Sensex ended above the crucial 72000 mark.” As valuations are getting expensive, investors are taking exposure to select frontline stocks with focus shifting to corporate earnings season.
