Pullback rally may continue in near future

Mumbai: The benchmark indices witnessed a pullback rally. The Sensex was up by 1,372 points. Among sectors, all the major sectoral indices traded in the green, but the Tourism and Capital Market indices outperformed, rallying over 3.5 per cent.

Technically, on the backdrop of positive global sentiment, the market opened with a gap and maintained the positive momentum throughout the day. A bullish candle on daily charts and a reversal formation on intraday charts indicate the continuation of the pullback rally in the near future.

“We are of the view that 73,500 and 73,000 would act as key support zones for traders,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

Above these levels, the market could continue its positive momentum until 74,500-74,800. However, below 73,000, sentiment could change. If the market falls below this level, traders may prefer to exit their long positions.