Weak sentiment likely to continue below 67k
On the flip side, fresh uptrend rally possible only after Sensex crosses 67,000pts
image for illustrative purpose
Mumbai In this week, the benchmark indices witnessed profit booking at higher levels andtheBSE Sensex was up by 624 points.Among sectors, buying was seen in banking and financial, media and pharma indices, whereas IT index corrected sharply, shedding over 3 per cent. Technically, during the week, the market registered a fresh all-time high of 67,619.17pts, but on Friday the market corrected sharply.
In addition, on intraday charts, the index has breached the crucial support of 67,000 and post breakdown, it is comfortably trading below the same, which is largely negative. In addition, a sharp intraday correction and reversal formation on daily charts indicates temporary weakness.
“We are of the view that, below 67,000pts, the weak sentiment is likely to continue.Below which, the market could slip till 66,200-66,000 levels,” says Amol Athawale, Technical Analyst (VP), Kotak Securities.
On the flip side, fresh uptrend rally possible only after dismissal of 67,000pts. Above the same, the index could retest the level of 67,300-67,500.
Contra traders can take a long bet near 66,000 with strict 100 points stop loss. For Bank Nifty, the short-term texture is still positive.For the trend following traders now, 45,800-45,500 would be the key levels to watch out for. Above the same, the Bank Nifty could move up till 46,500-46,900. On the flip side, below 45,500 levels,uptrend would be vulnerable.
