Buy on intraday corrections
On the first trading session of 2022, the benchmark index Sensex was up by 929 points.
Mumbai: On the first trading session of 2022, the benchmark index Sensex was up by 929 points. On Monday, the market opened with a positive note and successfully clear the intraday resistance of 58,500. Post intraday breakout, it intensified the positive momentum throughout the day. Among sectors, strong buying was seen in Banking and financial stocks whereas despite strong momentum, pharma stocks witnessed profit booking at higher levels. Technically, on daily charts, the BSE Sensex has formed long bullish candle which supports further uptrend.
In addition, after a long time the nifty succeed to close above 50-day SMA. "We are of the view that, the market is in to the strong uptrend, but due to temporary overbought situation market may witnessed some profit booking at higher levels. Hence, buying on intraday correction and sell on rallies would be the ideal strategy for the day traders," says Shrikant Chouhan, head (equity research-retail), Kotak Securities.
For traders, 58,900-58,700 would be the key support levels. On the other side, 59,500-59,650 would act as a key resistance level for the index. Below 58,600 uptrend would be vulnerable, he added.
