Uptrend wave likely to continue

Mumbai: On Tuesday, the benchmark indices witnessed positive momentum, BSE Sensex was up by 204 points. Among sectors, Energy and Oil & Gas indices rallied over two per cent whereas healthcare and pharma stocks witnessed intraday profit booking at higher levels. Technically, after a strong opening the market held the positive momentum throughout the day.

“A bullish candle on daily charts and higher high and higher low series formation on intraday charts suggesting uptrend wave is likely to continue in the near future. For the trend following traders now, the 65,900 points would act as a sacrosanct support zone,” says Shrikant Chauhan of Kotak Securities.

Above which, the market could rally till 66,500-66,650. On the flip side, below 65,900 points, uptrend would be vulnerable. Below the same, the traders may prefer to exit out from the trading long positions.

Prashanth Tapse, senior V-P (research), Mehta Equities, says: “After last week’s range-bound trend, the markets registered gains led by uptick in power, metal and auto stocks as hopes of strong growth momentum going ahead and receding worries of rate hikes in the US strengthened the mood.”

FIIs turned net buyers of local equities in the last few sessions and it too has brought some cheers to the market, even as caution could prevail in next few sessions ahead of monthly F&O expiry and exit poll results of elections in five States later this week.