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The market continued to rally. Nifty closed 105 points higher, while Sensex was up 324 points. Across sectors, IT, Defence, and PSU Bank indices gained over 2 per cent, while the Auto index declined the most by over 1.30 per cent.

Technically, the market opened with a gap-up, but once again witnessed selling pressure at higher levels. However, the short-term outlook of the market remains positive. Additionally, after a long time, Nifty managed to close above the 50-day SMA (Simple Moving Average), which is largely a positive sign. We believe the 50-day SMA/24920/81200 and 24,850/81100 levels will act as key support zones for traders. As long as the market continues to trade above these levels, the bullish trend is likely to continue. On the upside, the index can move towards 25,100–25,200/81700-82000. On the other hand, if the market falls below 24,850/81000, traders can consider exiting their long positions. 

The Nifty Bank is holding above the level of 54300, which is bullish. Expect further bullishness up to 54850-55150 and weakness below 54300 levels.

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