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 a stellar rally, with the Nifty gaining 4.25 percent, while the Sensex was up by 3070 points. Among sectors, all the major sectoral indices traded in positive territory, with the Capital Market and Defense indices gaining the most. The Capital Market rallied by 14 percent, and the Defense index gained over 10 percent. During the week, the market successfully cleared the short-term resistance of 22,700/75000, and post-breakout, the positive momentum intensified. It also surpassed the 20 and 50-day Simple Moving Averages (SMA), which is positive.
Technically, on weekly charts, a long bullish candle has formed. On daily and intraday charts, it is holding a higher bottom formation, which supports further upward movement from the current levels. We are of the view that the short-term market texture is bullish; however, due to temporary overbought conditions, we could see some profit booking at higher levels. For traders, the strategy should be to buy around 23100/23200 and keep a stop loss at 22900.
In the near future, 23,100/75800 and the 50-day SMA or 22900/75100 would act as key support zones, while 23,500-23,800/77400-78700 could be the key resistance areas for the bulls. However, if it falls below 22,900/75100, the sentiment could change, and traders may prefer to exit from their long positions.
The Bank Nifty rallied over 5 percent last week and is currently trading comfortably above the 50,000 mark. For the trend, traders should consider 50,000 and 49,700 as key support zones, while the 200-day SMA at 51,000 and 51,300 could serve as crucial resistance areas for positional traders.
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