Range-bound activity likely

Mumbai: On Monday, the benchmark indices witnessed narrow range activity as BSE Sensex was down by 169 points. Among sectors, Media index gained over one per cent whereas intraday profit booking were seen in Reality and PSU Banks stocks. Technically, after a muted opening the index took the intraday resistance at 71,550 points.

On daily charts, Sensex has formed small candle, which indicates incisiveness between the bulls and bears. “We are of the view that, the short-term market texture is still bullish, but due to temporary overbought conditions we could see range-bound activity in the near future,” says Shrikant Chouhan, Head- Equity Research, Kotak Securities. For the traders, 71,000-70,800 would act as a key supports zones while 71,550-71,750 could act as an important resistance zone. However, below 70,800 uptrend would be vulnerable.