Range-bound activity may continue
Mumbai: The benchmark indices continued to face selling pressure at higher levels. After a sharp intraday fall, BSE Sensex was down by 709 points. Among Sectors, almost all the major sectoral indices witnessed selling pressure at higher levels, but the Metal index lost the most, shed over 4.5 per cent. Technically, after a weak opening entire day the index held the negative momentum throughout the day. It also formed bearish candle which suggest further weakness from the current levels.
On intraday charts, currently the index has formed non-directional formation and the texture of the charts suggesting range-bound activity is likely to continue in the near future.
"For the traders, 52,100 would act as an immediate resistance level, above which it could rally till 52,400-52,600," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the flip side, 51,600 could be the key support level to watch out. Below the same, the index could slip till 51,300-51,100.