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
In the last week, the benchmark indices witnessed range-bound activity. After a roller-coaster week, the Nifty ended 0.69 percent lower, while the Sensex was down by 500 points. Among sectors, IT and Capital Market indices lost the most, shedding over 4 percent, while some buying was seen in selective Financial and Pharma stocks.
Technically, the market is exhibiting non-directional activity; on the lower side, it is consistently finding support near 22300/73300, while profit booking has been witnessed between 22600/74700 and 22650/74900. We believe that the current market texture is non-directional, and traders may be awaiting a breakout in either direction. For the bulls, the key breakout zone is at 22650/74900. A dismissal of the 22650/74900 breakout could push the market towards 22800-22900/75500-75800. Conversely, if the market falls below 22300/73300, selling pressure is likely to accelerate. Below this level, the market could retest levels of 22100-22000/72700-72400.
For the Bank Nifty, a double bottom support is placed at 47700. As long as it is trading above this level, a pullback formation is likely to continue. On the higher side, it could move up to the 20-day Simple Moving Average (SMA), or 48600 and 48800. However, if it falls below 47700, the sentiment could change, increasing the likelihood of hitting 47300-47000.
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