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Sensex still holding higher bottom formation

The 72,000 level would act as a key support level, above it the market could rally till 72,500-72,700. On the flip side below 72,000 we could see one quick intraday correction till 71,800-71,650

High valuations of market can constrain further rally, say analysts
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High valuations of market can constrain further rally, say analysts

Mumbai: On Wednesday, the benchmark indices witnessed a range-bound activity as BSE Sensex was down by 34 points. Among sectors, PSU Bank Index outperformed gained nearly 3.5 per cent whereas IT index shed 1.25 percent. Technically, after a gap-up opening, the market witnessed intraday selling pressure at higher levels. However, the short-term texture of the market is still in to the positive side.

“We are of the view that, on intraday and daily charts the market is still holding higher bottom formation, which supports further uptrend from the current levels,” says Shrikant Chouhan, head (equity research), Kotak Securities.

For the day traders now, the 72,000 would act as a key support level. Above the same, the market could rally till 72,500-72,700. On the flip side below 72,000 we could see one quick intraday correction till 71,800-71,650.

Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Markets erased all its gains towards the end as profit-taking in IT stocks and sluggish global indices weighed on the sentiment.”

Traders are adopting a cautious stance ahead of the credit policy announcement tomorrow. While investors are bracing for a status-quo on the interest rate decision, what will be important to note is the tone of the announcement which would signal the central bank’s stance on interest rate going ahead.

Kumud Das
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