Quote on Market Wrap by Shrikant Chouhan, Head Equity Research, Kotak Securities
Below the Quote on Market Wrap by Shrikant Chouhan, Head Equity Research, Kotak Securities
The benchmark indices continued their positive momentum for the sixth day in a row, with the Nifty ends 308 points higher and the Sensex up by 1079 points. Among sectors, almost all major sectoral indices traded in positive territory, but the Defence and PSU Bank indices outperformed, rallying over 3 percent. Technically, after a gap-up open, the market maintained positive momentum throughout the day. A bullish candle on daily charts and an uptrend continuation formation on intraday charts indicate further upward movement from the current levels.
We believe that the short-term market formation is still on the positive side, but due to temporary overbought conditions, we might see some profit booking at higher levels. For day traders, the 23,800-23,900/78500-78700 range would be the key resistance areas, while 23,500-23,400/77500-77200 could act as significant support levels for trend-following traders. However, if the market falls below 23,400/77200, traders may prefer to exit their long positions.
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