Pullback formation is likely to continue
On the higher side, 82800 would be the immediate resistance, above which it may move up to 83100-83300. Below 81700, the uptrend would become vulnerable
Pullback formation is likely to continue
The benchmark indices continued their positive momentum. The Sensex was up by 222 points. Among sectors, the Metal index outperformed today, rallying over 3 percent, whereas intraday profit booking was seen in the Defence index, which shed 1 per cent. Technically, after an early morning intraday dip, the market took support near 81700 and reversed sharply.
From the day’s lowest point, the market rallied over 900 points. Additionally, on intraday charts, the market is holding an uptrend continuation formation, and on daily charts, it has formed a bullish candle, which supports further uptrend from the current levels. For trend-following traders, now 82200 and 81700 would act as key support zones.
“As long as the market is trading above these levels, the pullback formation is likely to continue,” says Shrikant Chouhan of Kotak Securities. On the higher side, 82800 would be the immediate hurdle for the bulls. A successful breakout above 82800 could push the market up to 83100-83300. On the flip side, below 81700, the uptrend would become vulnerable.
