Uptrend texture likely to continue
Higher bottom formation on intraday charts indicating short-term uptrend
image for illustrative purpose
Mumbai: The benchmark indices witnessed narrow range activity, after a volatile trading session, BSE Sensex was closed at 58,136 points. Among sectors, PSU Bank index gained the most, rallied over 2.3 per cent whereas profit booking was seen in reality and selective IT stocks.
Technically, after initial intraday correction, the index took the support near 57,700 and recovered. From the day lowest point, the index rallied over 580 points.
The higher bottom formation on intraday charts is indicating continuation of uptrend in the near future.
"We are of the view that, as long as the index is trading above 57,700 points, the uptrend texture is likely to continue. Above the same, the index could move up to 58,300-58,500 range. On the flip side, below 57,700, traders may prefer to exit out from the trading long positions. Below 57,700 points, the index would slip till 57,500-57,300 range," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
