Range-bound activity in near future
The benchmark indices continued profit booking at higher levels, after a sharp correction, BSE Sensex was down by 796 points. Among sectors, almost all the major sectoral indices witnessed intraday profit booking, but Metal index was top looser, shed over 1.5 per cent.
Technically, after a gap-down opening, the index intensified the selling pressure, it also breached 67,100 mark and succeed to closed below the same, which is largely negative.
“We are of the view that, the intraday market texture is weak, but due to temporary oversold conditions, we could see a range-bound activity in the near future,” says Shrikant Chouhan of Kotak Securities.
For the bulls now, 67,100-67,300 could act as an immediate resistance area, while 66,600-66,500 could act as a crucial support zone for the traders. For the day traders, Buying on dips and sell on rallies would be the ideal strategy.