Wait for further uptrend from current level

Mumbai: On the last day of December monthly F&O series, the benchmark indices witnessed bullish momentum. The benchmark Sensex was up by 372 points. Among sectors, Energy, PSU Banks, FMCG and Pharma indices rallied over 1 per cent whereas intraday profit booking were seen in selective digital and IT stocks. Technically, on the backdrop of positive global sentiments, our market opened with a gap-up and it also registered a fresh all time high of 72,484.30.

A bullish candle on daily charts and breakout continuation formation on intraday charts indicating further uptrend from the current levels. “We are of the view that, for the trend following traders now, 72,000 would act as a sacrosanct support level,” says Shrikant Chouhan, Head – Equity Research, Kotak Securities. Above the same, the positive sentiment is likely to continue. Above which, the index could move up till 72,800-72,950. On the flip side, below 72,000 the sentiment could change. Below the same, we could see a quick correction till 71,700-71,550.

Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Markets witnessed bullish bets on the monthly F&O expiry day, indicating that the risk-on sentiment is likely to continue going ahead on hopes of a strong local macro play in the new-year. The waning higher inflation concerns and expectations of an early rate cut in the world's largest economy has further strengthened hopes that India's growth momentum would continue further thus boosting investors' confidence.

However, amidst overbought technical conditions, key indices may consolidate in the near term but, that said, the medium-term outlook continues to be in favour of the bulls but only on any steep corrective declines.