Profit booking likely at higher level
For traders now, the 63,000 and 62,800 levels could act as key support zones, whereas 63,500-63,800 would be the key resistance zones; Below 62,800, traders may prefer to exit from long positions
image for illustrative purpose
Mumbai: On Thursday, the benchmark indices opened with a gap up and registered fresh all-time highs. BSE Sensex was up by 184 points. Among sectors, IT and media gained the most. Both the indices rallied over two per cent, while intraday profit-booking was seen in energy and oil stocks.
Technically, on the backdrop of strong global cues, our market opened on a strong note, but after a strong opening, it continued to hover between 63,200-63,500. It also formed a small bearish candle on daily charts, which indicated indecisiveness between the bulls and the bears.
We are of the view that the larger texture of the market is bullish, but due to temporary overbought conditions, we could see some profit booking at higher levels.
"For traders now, 63,000 and 62,800 could act as key support zones whereas 63,500-63,800 would be the key resistance zones," says Shrikant chouhan, Head of Equity Research ( Retail), Kotak Securities. Below 62,800, traders may prefer to exit from long positions.
