IGI Logo

The benchmark indices witnessed considerable volatility last week. On a weekly basis, the Nifty ended 0.37 per cent higher, while the Sensex was up by 423 points. Among sectors, the Media index lost the most, shedding nearly 6 per cent, whereas the Capital Market and IT indices rallied over 2 per cent.

Technically, after a short-term correction last Friday, the market bounced back sharply. It not only reclaimed the 50-day SMA (Simple Moving Average) at 24400/80200 but also succeeded in closing above it, which is largely positive. Additionally, it formed a promising reversal formation on daily charts, supporting a further uptrend from the current levels.

For positional traders, the 50-day SMA at 24400/80200 and 24300/79900 would be crucial support zones. As long as the market is trading above these levels, a bullish trend is likely to continue. On the higher side, the market could rally up to 25000/82000, with further upside potentially lifting the index to 25200/82600.

For Bank Nifty, the short-term formation is bullish, and 53000 and 52800 will be the key support zones, while 54000 could act as a crucial resistance level. However, crossing these levels would result in a rally towards 54500 levels.

The strategy should be to take long bets on dips between 24650-24550/81000/80700 levels. On the dismissal of 25000/82000, the formation of an inverted H&S would validate that it could pull the market towards 25800/84400 levels.