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Below the Quote on Market Wrap Up by Shrikant Chouhan, Head Equity Research, Kotak Securities Ltd

Today, the benchmark indices witnessed a volatile trading session, after a roller coaster activity the Nifty ends 203  points higher while the Sensex was up by 677  points. Among Sectors,  Reality indices outperformed rallied 1.90  percent whereas despite strong momentum some profit booking were seen in selective PSU Banks stocks. Technically, after intraday correction the market took the support near 22050/72530 and bounce back sharply. On intraday  charts, it has formed strong reversal formation  and it also succeeds to  close above 50 and 20 day SMA (Simple Moving Average) which is largely positive. We are of the view that, 50-day SMA or 22310/73500 would act as a sacrosanct support zone for the bulls. As long as the index is trading above the same, the bullish momentum is likely to continue. On the higher side, immediate resistance for the index could be 22500-22600/74000-74200. On the flip side, below 50 day SMA or 22310/73500  uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.

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