Reduce weak long positions amid uncertainty

Mumbai: Asian markets started the week with gains, even after their American peers closed lower on Friday. The Indian market advanced and managed to overcome the resistance at the levels of Sensex at 60,476 levels.

The BSE Sensex closed at 60,145 points. The NSE Nifty PSU, Auto and Metal indices closed at the highest point of the day. The technology sector closed at the lowest point of the day due to exceptional weakness in the technology giant TCS. The stock-specific activity was seen in SBI, Tata Motors, Maruti and ZEEL.

Technically, the market has formed a Shooting Star pattern at the top of the rally, which is an indication of uncertainty in the market. "There should be a strategy to reduce the weak long positions in the market to the resistance levels that exist at 60,200, 60,450 and 60,600. If the Sensex forms a positive reversal after hitting the major supports that exist at 59,800 or 59,650, a buy is advised," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.

In case, the market closes below the 59,600 level would further weaken the market to the 59,000 levels, he added.