Uptrend formation may continue up to 60,400-60,700pts
Mumbai: The benchmark indices continue positive momentum, on Tuesday, after a muted opening the index slipped over 150 points, but one more time it took support near 59,850 and reversed sharply.
Among sectors, PSU banks stocks outperformed. The Nifty PSU Bank index rallied over three per cent. While profit booking was seen in IT stocks. Technically, on daily and intraday charts, the index has formed promising higher bottom formation.
The intraday structure suggests 59,850 would be the trend decider level for the bulls. Above the same, uptrend formation is likely to continue up to 60,400-60,700.
"On the flip side below 59,850 uptrend would be vulnerable. The texture of the market is strong. Hence, buy on dips and sell on rallies would be the idea strategy for the day traders," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.