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Pullback formation is likely to continue

The short-term formation is still on the weak side

Pullback formation is likely to continue

Mumbai: On Tuesday, the benchmark indices witnessed volatile trading session, after a roller coaster activity the Sensex was up by 483 points. Among Sectors, Banking and Financial stocks witnessed intraday recovery from the lowest level, as a result, both the indices gained over 1 per cent whereas Metal index drag nearly 2 per cent.

Technically, after an early morning intraday correction, the market took the support near 70,950 and bounce back sharply. However, the short-term formation is still in to the weak side. “For the traders now, 71,200 would act as a trend decider level. Above the same, the pullback formation is likely to continue,” says Shrikant Chouhan of Kotak Securities. Above which, the market could move up till 71,800-72,000.

On the flip side, below 71,200 the sentiment could change. Below 71,200 the market could slip till 71,000-70,700. Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Although markets ended in positive territory, it was mainly due to recovery in banking stocks which were hammered in recent sessions due to mixed earnings in financial space and central banks delaying rate cuts.”

Volatility is likely to persist as most of the hurdles such as geo-political worries coupled with stretched valuations of local stocks and FII selling will continue to keep investors at bay.

Kumud Das
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