Markets likely to continue uptrend

Mumbai: The benchmark indices continued their positive momentum. The Sensex was up by 633 points. Among sectors, almost all the major sectoral indices registered buying interest at lower levels, but the Media index outperformed today, rallying over 3 per cent.

Technically, after a positive open, the market held positive momentum throughout the day. An uptrend continuation formation on intraday charts and a bullish candle on daily charts indicate a further uptrend from the current levels.

“We are of the view that the market has completed one leg of the pullback rally, and we could see some profit booking at higher levels,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

For day traders, buying on intraday dips and selling on rallies would be the ideal strategy. On the downside, 76,000 and 75,700 would be the immediate support zones, while 77,000-77,300 could act as crucial resistance areas for the bulls.

However, below 75,700, the sentiment could change. If the index falls below this level, traders may prefer to exit their long positions.