Anand Rathi: Markets in corrective mode

Anand Rathi Securities in its technical call says that Sensex and Nifty have exhibited a bullish candlestick, which  indicates that there was buying support at lower levels. As such this candlestick has bullish implications.

The current rise appears to be corrective in nature and may encounter selling pressure at higher levels. Hence, it may be prudent to keep tight stop loss levels for long positions for the time being.

On the resistance front, the Nifty faces resistance at around 3490 and the Sensex at around 11,975 levels. Technically, for the market to regain its upward momentum, the indices must stabilize above these resistance levels.

Till such time the current trend can be assumed to be in a corrective mode. On the support front, the Sensex may find support at around 11,300 level. Nifty on the other hand may find support between 3325-3300 levels.

In the punter's zone they have a Buy on Satyam Computer, HCL Tech and Punj Lyod. In the Technical call section,  they have a Buy on ITI, SBI and Punjab National Bank.