Narrow-range activity may continue
For bulls, 65,600pts would be immediate breakout level, above which it could rally till 65,900-66,000 levels; On other side, below 65,250pts, the selling pressure is likely to accelerate
image for illustrative purpose
Mumbai On Wednesday, the benchmark indices witnessed range bound activity, where NSE Nifty ended 10 points higher and 30-share index BSE Sensex declined by 33 points. Among sectors, FMCG, Auto and Medial indices outperformed, rallied over one per cent, where as some profit booking were seen in selective banking and financial stocks.
Technically, after a strong uptrend rally, the market is witnessing range-bound activity at higher levels. However, the short-term formation is still in to the positive side. “We are of the view that, as long as the index is trading between 65,250-65,600 levels, the narrow range activity is likely to continue,” says Shrikant Chouhan of Kotak securities. For the bulls, 65,600pts would be the immediate breakout level. Above which, the market could rally till 65,900-66,000 levels. On the other side, below 65,250pts, the selling pressure is likely to accelerate. Below which, the market could slip till 65,000-64,800. Contra traders can take a long bet near 64800pts with a strict 100 points stop loss.
