Range-bound texture may continue

Mumbai: On Tuesday, the benchmark indices witnessed a volatile trading session, BSE Sensex was up by 122 points. Among sectors, FMCG, Energy and PSU Bank indices rallied over one per cent whereas IT index shed over one per cent.

Technically, from last two days the index witnessing range-bound activity at higher levels. On the lower side, it is consistently taking support near 71,050 points, while it is regularly taking resistance near 71,700 points.

“We are of the view that, as long as the market is trading between 71,050 and 71,700 points, the range-bound texture is likely to continue,” says Shrikant Chouhan, head (equity research), Kotak Securities.

Hence, buying on dips and sell on rallies would be the ideal strategy for the day traders. However, below 71,050 points, the texture could change. Below the same, the market could retest the level of 70,800-70,650 points. On the flip side, post 71,700 breakout, the index could rally till 72,000 points.