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
During the week, the market opened with a substantial gap down and fell below 22,000. However, due to buying interest at lower levels, there was a sharp rebound. The market formed a long white candle on the weekly chart after hitting its lowest point in the last six months at 21750. It is a bullish sign, but we need additional positive momentum from other indices in the coming week to support the current bullish formation. On the upside, the market may encounter resistance at 23300/23500 levels. Crossing and closing above 23800 levels would indicate a potential move towards higher targets, which would ultimately test the strength of the long-term market trend. Conversely, if the market sustains below the 22800 level, it could lead to gradual weakness towards 22500.
Considering the breadth of the market, we believe it has likely experienced its worst phase for at least the medium term. The strategy should focus on buying on dips around support levels.
For the Bank Nifty, after a correction, it rebounded sharply and is currently trading near the 200-day SMA. For trend-following traders, the 200-day SMA, or levels around 51,000 and 50,500, would act as key support areas for the bulls. As long as it remains above these levels, the bullish sentiment is expected to continue. On the upside, it could retest the range of 51,800 to 52,500. However, if it falls below 50,500, the chances of reaching levels of 50,200 to 50,000 would increase
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