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Today, the benchmark indices bounced back sharply; the Nifty ends 221 points higher, while the Sensex was up by 678 points. Among sectors, almost all major sectoral indices traded in positive territory, but the IT and Tourism indices outperformed, gaining over 1.5 percent. Technically, after a muted open, the market successfully cleared the 20-day SMA (Simple Moving Average) or the 24,850/81500 resistance mark. Following the breakout, positive momentum intensified. On daily charts, it has formed a bullish candle, and on intraday charts, it is holding an uptrend continuation formation, which is broadly positive.

We believe that the 20-day SMA or the 24,850/81500 and 24,775/81200 levels are key support zones for day traders, while 25,100/82300 and 25,150/82500 would act as crucial resistance levels for the bulls. For day traders, buying on intraday dips and selling on rallies would be the ideal strategy. However, below 24,775/81200, sentiment could turn negative. If the market drops below this level, traders may prefer to exit their long positions.