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Below the Quote on Weekly Market Wrap by Amol Athawale, VP-Technical Research, Kotak Securities

In the last week, the benchmark indices continued their positive momentum. The Nifty ends 1.2 percent higher, while the Sensex was up by 1300 points. Among sectors, the Defense index outperformed, rallying over 6 percent, whereas the Media index shed 1.70 percent. During the week, the market comfortably traded above the 200-day SMA (Simple Moving Average). Technically, it has formed a bullish candle on weekly charts and is also holding an uptrend continuation formation on daily charts, which is largely positive.

We are of the view that 24,200/79900 would act as a sacrosanct support zone for trend-following traders. Above this level, the market could continue its positive momentum up to 24,600–24,800/81000-81700 . On the flip side, below 24,200/79900, the uptrend would become vulnerable. Falling below this level, the chances of hitting the 200-day SMA or 24,050/79500 would increase. Further downside may also continue, potentially dragging the index down to 23,900/79000.

For Bank Nifty, a lower top formation has formed on daily and intraday charts. For traders, 55,800 would be the immediate breakout level. Above this, it could move up to 56,100–56,500. However, a dismissal of 54,700 could accelerate selling pressure. Below this level, it could slip to 54,000–53,700.