Mumbai: After sliding by over 1200 points in the last two sessions, the Sensex climbed up by 202.19 points on the Bombay Stock Exchange on Wednesday to close at 16,542.08 amid volatile trade.
Despite positive global cues, the benchmark opened with a negative gap and shed over 86 points to touch a low at 16,253.02 in early trade, but rebounded in late trade to touch a day's high of 16,595.64, gaining 255.75 points on fresh inflows.
Does this mean the markets are finally looking up after days of downside volatility? Or is it time investors book profit before the Sensex kisses a new low.
Technical analyst Sudarshan Sukhani says if Nifty were to make a rally and if it comes close to that number, then profits should be taken.
"But any brave long trade should be made with a clear understanding that 4800 is your stop loss. If Nifty were to fall below it, we do not want to find out where it will go," he says.
According to TS Harihar of Karvy Stock Brokings, the markets are going down because there is no buying. "Till buying comes back, don't think that the market will bounce back. So unwinding is that big a concern today," he says.
Emkay Share & Stockbroker MD Krishna Kumar Kawa says now that it has moved below 5000 on the upside, it's going to be tough for the market to move beyond 5350 for one to one-and-a-half months.
"On the downside, 4800 seems a good support, but if it breaks that then we are staring at 4500. So 4800 is an important level for investors to watch out," he says.
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