Uptrend may continue further
For bulls, 58,800-59,000 could be key supports zones, above which Sensex could move up to 59,500-59,800; On flip side, below 17400/58800, uptrend would be vulnerable
image for illustrative purpose
Mumbai: The benchmark indices witnessed strong recover rally from the day lowest levels, the BSE Sensex was up by 95 points. Among sectors, PSU banks and energy stocks bounced back sharply, while intraday correction was seen in selective private bank stocks.
Technically, after a gap down opening, the index held the crucial support level of 58,800 and bounced back sharply. It also formed bullish candle on daily charts and succeeded to close above 50 day SMA (Simple Moving Average) which is broadly positive.
"We are of the view that, the index has formed uptrend continuation formation, the texture of the market indicating continuation of the uptrend in the near future. For the bulls, 58,800-59,000 could be the key supports zones, above which the index could move up to 59,500-59,800," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. On the flip side, below 17400/58800, uptrend would be vulnerable.
