Sensex forms Hammer candlestick
For day traders, 54,300 would act as a crucial support level, below which quick intraday correction till 54,000-53,900; on the flip side, fresh uptrend possible only after 54,500 intraday breakout
Mumbai: On Monday, post sharp uptrend rally the benchmark indices opened with a strong note but once again it took the resistance near 54,900 and registered profit booking at higher levels. Among sectors, sharp selloff was seen in Metal index, corrected over 8 per cent whereas Auto stocks outperformed, as a result Auto index rallied over 2 percent.
"Technically, on intraday charts, the index has formed double top formation and on daily charts it has formed Hammer candlestick formation which is broadly negative," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
However, the short term texture of the market is still in to the positive side. For the day traders now, 54,300 would act as a crucial support level, below the same, we could see quick intraday correction till 54,000-53,900, he added. On the flip side, fresh uptrend possible only after 54,500 intraday breakout. above which the index could move up to 54,800-55,000.