Bullish texture may continue
The 72,500 would act as a strong support zone, above which Sensex is likely to continue upward momentum till 73,200-73,500 range; On the flip side below 72,500 level, the uptrend could be vulnerable
Mumbai: On Tuesday, the benchmark indices witnessed a volatile trading session as BSE Sensex closed at 349 points higher. Among sectors, Media index outperformed rallied over two per cent whereas profit booking were seen in selective IT and Auto stocks. Technically, after early morning intraday correction the Sensex took the support near 72,500 and reversed. From the days lowest point market rallied 151 points.
Shrikant Chouhan, head (equity research), Kotak Securities, says: “We are of the view that as long as index is holding higher bottom formation on intraday charts the bullish texture is likely to continue.”
For the trend following traders, now the 72,500 would act as a strong support zone. Above which the index is likely to continue upward momentum till 73,200-73,500 range. On the flip side below 72,500 level, the uptrend could be vulnerable, below the same traders may prefer to exit out from trading long position.
Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Impressive buying in banking stocks propelled benchmark Nifty to touch a new high and close above the 22k mark, as the recent sell-off in the financial space had made several banking counters attractive for investors to take renewed exposure. Despite the ongoing conflict in the Red Sea and the Middle-East, stable oil prices have helped improve market sentiment.”
However, the focus will be on Wednesday’s minutes of the US Fed’s last meeting on policy rates, which will provide more clarity on interest rate direction in the near term.
