Strong resistance near 60,700 level

Mumbai: On Wednesday, the benchmark indices opened dip in the red, but after a gap-down opening the market recovered sharply. After a sharp bounce back, NSE Nifty ends 66 points lower, while BSE Sensex down by 224 points.

Among sectors, IT Index corrected sharply, shed over three per cent whereas strong buying interest continued in banking, financial and metal stocks.

Technically, despite weak global scenario our market witnessed a sharp recovery from the day lowest points. From the day lowest point, the index recovered over 1,200 points. "On daily charts, the index has formed bullish candle, but at the same time, it consistently taking resistance near 60,700 level. The current market structure is extremely volatile. Hence, buy on dips and sell on rallies would be the ideal strategy for the traders," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. For the bulls, 60,000 would be the key support level, if the index sustains above the same, it could move up to 60,600-60,800. On the flip side, fresh round of selling pressure possible only after 60,000. Below 60,000, the index could retest the level of 59,500-59,400.