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Below the Quote on Sensex by Sachin Gupta, VP – Technical Research at Choice Equity Broking Private Limited

"BSE SENSEX extended its recovery, closing at 74,459.53, up 308.49 points (+0.42%). The index opened at 74,199.69, witnessed a minor pullback to an intraday low of 74,082.03, and advanced to a high of 74,742.59 before settling in positive territory. The sustained buying interest during the session helped the benchmark maintain its upward momentum.

According to price action, the 73,800–74,000 zone remains the immediate support area, while resistance is placed around 74,700–75,000. The broader trading range stands at 73,800–75,000, indicating a sideways to bullish bias. Sustaining above the immediate support zone will be important for maintaining the recovery, while a decisive breakout above 75,000 could open the door for further upside.

Sectoral performance remained mixed, with BSE Focused IT, BSE Information Technology, BSE Healthcare and BSE Consumer Durables emerging among the major gainers. On the other hand, BSE Capital Goods, BSE Industrials, BSE Telecommunications and BSE Auto were among the key laggards. Strength in IT and healthcare stocks supported the broader market, although weakness across capital goods and industrial stocks limited the overall upside.

The technical structure continues to show improvement, as the SENSEX opened with a mild gap-up of around 48 points and witnessed follow-up buying during the session. The index closed above both the 20 EMA and 50 EMA on the daily chart, indicating strengthening bullish momentum. Despite the previous week's decline, the index recovered a substantial portion of its losses this week after taking a trendline support on the weekly timeframe and formed a strong bullish weekly candle. The Daily RSI stands at 55.32, while its moving average is at 48.47, indicating improving momentum and a positive technical setup.

In the derivatives segment, the highest put open interest for the first session of the next expiry is concentrated at 74,200 PE, followed by 74,000 PE, where put writers are active and may provide support to the index. On the higher side, 75,000 CE holds the highest call open interest, making it an important resistance level. The PCR stands at 1.18, indicating relatively stronger put-side positioning and a moderately positive derivatives outlook. These strikes will remain important reference levels for gauging the index's next directional move.

Overall, the SENSEX  remains sideways to bullish, supported by its recovery above key moving averages, a strong weekly candle and improving RSI momentum. Holding above 73,800–74,000 will be crucial to sustain the positive structure, while a breakout above 74,700–75,000 could trigger the next leg of the upward move. On the downside, a breach of the immediate support zone may lead to some profit booking. Overall, the technical structure favours a positive approach, with traders keeping a close watch on the 75,000 resistance zone for further confirmation."

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