Sensex may see further upside

Mumbai: On Tuesday, the benchmark indices continued the positive momentum. Sensex was up by 230 points. Among sectors, buying was seen in energy, metal and pharma stocks whereas profit booking was seen in selective IT and digital stocks.

Technically, after muted opening, the index held the positive momentum throughout the day. On daily charts, it has formed a bullish candle while on intraday charts, it is holding higher bottom formation, which is largely positive.

“For the trend following traders now, 71,000 would act as a trend decider level. Above the same, the market could retest the level of 71,600. Further upside may also continue which could lift Sensex till 71,800,” says Shrikant Chouhan, Head – Equity Research, Kotak Securities.

On the flip side, below 71,000 uptrend would be vulnerable. Below which, we could see the levels of 70,700-70,600, he adds.

With the year-end round the corner, investor participation is likely to remain thin, which could see the markets turn range-bound with a mixed bias over the next few days.