Time for level-based trading
The 71,500 level would act as an important support, above which the market could move up till 72,000-72,300 range
image for illustrative purpose
Mumbai: On Wednesday, the benchmark indices bounced back sharply from the lower levels as BSE Sensex was up by 278 points. Among sectors, PSU Banks and Oil and Gas indices gained over three percent whereas Pharma and IT stocks witnessed intraday profit booking at higher levels. Technically, after a gap down opening, the market took the support near 70,800 and bounced back sharply. On daily charts, it has formed long bullish candle, which is largely positive.
“We are of the view that, the current market texture is non-directional. Hence, level-based trading would be the ideal strategy for the day traders,” says Shrikant Chouhan, head (equity research), Kotak Securities.
For the day traders now, the 71,500 would act as a important support level. Above which, the market could move up till 72,000-72,300 range. On the flip side, below 71,500 level, the Sensex could retest the level of 71,000-70,800 range.
