Quote on Market Morning Inputs by Shrikant Chouhan, Head Equity Research, Kotak Securities
Below the Quote on Market Morning Inputs by Shrikant Chouhan, Head Equity Research, Kotak Securities
Technically, after a promising uptrend rally, the market faced resistance near 23850/78740 and reversed. Additionally, on the weekly charts, a Doji candlestick formation was formed, indicating indecisiveness between the bulls and bears. We believe that the market is currently experiencing selling pressure at higher levels. However, the short-term sentiment remains positive. For traders, 23650/78200 would be a key level to watch. As long as the market is trading below the same, the market could retest the level of 23400-23350/77100-76900. Further weakness could also drag the market down to 23000-22950/76100-75900. Conversely, if the market rises above 23650/78200, it could bounce back to 23850/78800. A dismissal of the 23850/78800 breakout could push the market towards 24000/79300.
The strategy should be to reduce weak long positions if the Nifty closes below the level of 23350 level or at bounces back to the 23700-23800 levels.
For the Bank Nifty, the 200-day Simple Moving Average (SMA) at 51000 would be a critical support zone. If the index remains above this level, it could maintain positive momentum up to 52200-52500. However, a close below the 200-day SMA or 51000 could alter the sentiment. If this occurs, the likelihood of hitting 50500-50400 would increase.
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