PSU Bank index lost the most by shedding over 3% this week
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In the last week, the benchmark indices witnessed volatile activity, and after a roller-coaster moment the Nifty ended 0.55 per cent lower while the Sensex shed over 375 points, Amol Athawale, Vice President at Technical Research, Kotak Securities, said on Friday.
Among sectors, FMCG, oil & gas and pharma index gained over 1 per cent, whereas profit booking was seen in PSU banks , private banks and media indices.
The PSU Bank index lost the most, shedding over 3 per cent, Athawale said.
During the week, the Nifty/Sensex registered fresh all-time highs of 21,593 /71,913, but due to consistent profit booking at higher levels, it corrected sharply. From the weekly highest levels, the Nifty/Sensex corrected over 600/1,900 points. After a sharp decline, it took the support near 21,000/70,000 and bounced back sharply, he said.
"Technically, the short-term texture of the market is volatile hence; level based trading would be the ideal strategy for the day traders. We are of the view that, as long as the index is trading above 21,200/70,700, the pullback formation is likely to continue. Above the same, the market could move up till 21,500-21,550/71,500-71,650.
"On the flip side, below 21,200/70,700 the sentiment could change. Below the same, the market could retest the level of 21,100-21,000/70,400-70,000," Athawale said.
For Bank Nifty, 47,000 could act as a sacrosanct support zone, above which it could rally till 48,000-48,300. However, below 47,000 uptrend would be vulnerable. Below which, it could slip till 46,700-46,500, he added
