IGI Logo

Below the Market Wrap by Amol Athawale, VP-technical Research, Kotak Securities

In the last week, the benchmark indices witnessed profit booking at higher levels, the Nifty ends 1.42 percent lower while the Sensex was down by 1260 points.

Among Sectors, Metal index lost the most nearly 3 percent whereas despite weak market sentiment Healthcare and Pharma stocks continued positive momentum. During the week, market slipped below 20 day SMA (Simple Moving Average) but in the second half of the week it trimmed some losses and eventually closed at 24367/79722. Technically, the larger texture of the market is still in to the weak side. However, as long as it is trading above 24200/79200 the pullback formation is likely to continue up to 20 day SMA or 24525/80400. Further upside may also continue which could lift the market till 24625/80800. On the other side, dismissal of 24200/79200 could accelerate the selling pressure. Below which it could slip till 24000/78700 or 50 day SMA and 23850/78200. For Bank Nifty now, 50000 would be the immediate reference point for the bulls. Above 50000, it could bounce back up to 50800 and 50 day SMA or 51200. On the flip side, below 50000 uptrend would be vulnerable. Below the same, we could expect 49700-49500.

Above views are of the author and not of the website kindly read disclaimer