The index forms bullish candle

Mumbai: On last Monday, the benchmark indices witnessed a Stellar rally, the Sensex was up by 710 points. Among Sectors, strong buying was seen in Auto and banking and Reality stocks whereas despite strong momentum PSU Banks and Media indices were traded in the red. “Technically, after a last Friday correction, the Sensex once more time took the support near 61,000 and bounced back sharply,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Post reversal, the index successfully cleared the short-term resistance of 61,450 which is broadly positive. On daily charts, the index has formed bullish candle and currently it is comfortably trading above 61,450 level. For trend following traders now, 61,450 would be the sacrosanct support level. Above the same, the index could move up till 62,000-62,300. On the flip side, below 18200/61450 uptrend would be vulnerable.