Uptrend wave may continue in near future
image for illustrative purpose
Mumbai: On Tuesday, the benchmark indices bounced back sharply as BSE Sensex was up by 402 points.
Among sectors, once again PSU Bank index outperformed, rallied nearly four per cent, while despite strong momentum some profit booking was seen in selective reality stocks. As a result, Reality index shed nearly one per cent.
Technically, the market not only reclaimed 20-day SMA (Simple Moving Average) level, but it succeeds to close above the same which is broadly positive. Bullish candle on daily charts and promising reversal formation are indicating continuation of uptrend wave in the near future.
"We are of the view that, uptrend texture is likely to continue in the near future and 62,800-63,000 would be the next resistance zone for the bulls," says Shrikant Chouhan, head of Equity Research (Retail), Kotak Securities.
On the other side, a fresh selloff possible only after dismissal of 62,000 below the same, traders may prefer to exit out from the trading long positions.
