Sensex holds uptrend continuation formation
For traders now, 62800 would be trend decider level, above which, index could move up to 63,500-63,700; On the flip side, traders may prefer to exit out from trading long positions, if it trades below 62,800
Mumbai: The benchmark indices continued positive momentum, BSE Sensex registered a fresh all time high of 63,300. Among sectors, except PSU banks, all the major sectorial indices were traded in the green, but Energy index outperformed rallied nearly 2 percent.
Technically, the index holds the uptrend continuation formation and it also formed long bullish candle on daily charts, which is broadly positive. However, intraday texture is mildly overbought, hence we could expect some profit booking at higher levels.
"For the trend following traders now, 62800 would be the trend decider level. Above which, the index could move up to 63,500-63,700," says Shrikant Chouhan of Kotak Security. On the flip side, traders may prefer to exit out from trading long positions, if the index succeeds to trade below 62,800. Below which, it could slip till 62,500-62,350.
