IGI Logo

Below the Quote on Market Morning inputs by Shrikant Chouhan, Head Equity Research, Kotak Securities

Benchmark indices maintained their positive momentum last week, with the Nifty closing up by 1.2 percent and the Sensex rising by over 1,300 points. Among the sectors, the Defence index outperformed, gaining over 6 percent, while the Media index declined by 1.7 percent. Throughout the week, the market traded comfortably above the 200-day Simple Moving Average (SMA).

Technically, a bullish candle has formed on the weekly chart, and the daily chart shows a continuation of the uptrend, which is largely positive. We believe that 24,200/79900 will serve as a crucial support zone for trend-following traders. If the market stays above this level, it may continue its upward momentum toward 24,600-24,900/81000-82000. Conversely, if it closes below 24,200/79900, the uptrend will weaken. A drop below this level would heighten the chances of a retest of the 200-day SMA, currently at 24,050/79500 or 23850, which was an earlier resistance level for the market. Based on the current technical formation, we believe the market is heading towards 24900/82000 in the near term.

The recommended strategy is to establish a long position with a stop loss at 24200 on a closing basis.

For Bank Nifty, a lower top formation has been observed on both the daily and intraday charts. For traders, an immediate breakout level is at 55,800. A rise above this level could lead to gains of 56,100-56,500. However, if the market rejects 54,700, selling pressure could increase. In such a case, it may fall to the levels of 54,000-53,700.

Above views are of the author and not of the website kindly read disclaimer