A fresh pullback rally is possible above 53,700
Above 53,700 index could move up to 54,000-54,250, below which correction wave is likely to continue and would slip till 53,400-53,200
Mumbai: Profit booking continued at higher levels, the Sensex was down by 372 points. Among Sectors, Energy and Private Banks witnessed profit booking at higher levels whereas Pharma index outperformed and rallied over 1 per cent.
Technically, the market opened with a gap up but failed to surpass the intraday resistance of 54,250. And due to profit booking at higher levels, it corrected sharply. On daily charts, the index has formed bearish candle and after a long time it closed below 50 day SMA level.
"We are of the view that, a fresh pullback rally is possible only after 53,700. Above which, one quick intraday rally is likely," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Above 53,700 the index could move up to 54,000-54,250. On the flip side, correction wave is likely to continue, if the index succeeds to trade below 50 day SMA or 53,700. Below the same, the nifty would slip till 53,400-53,200. Contra 53,000 support act as a stop loss level.
