Quote on Weekly Market Wrap by Amol Athawale, VP-Technical Research, Kotak Securities
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, with the Nifty up by 4.48 percent, while the Sensex rose by 3400 points. Among sectors, all leading sectoral indices traded in positive territory, but the Realty and Private Bank indices outperformed, Reality 7, Private Banks 6.90 gained.
Technically, during the week, the market successfully surpassed the 20-day and 50-day SMA (Simple Moving Average) zones, which is largely positive. On the weekly charts, a bullish candle was formed, and the market is holding an uptrend continuation formation on both daily and intraday charts, supporting further upward movement from current levels.
We believe that the short-term market texture is bullish; however, due to temporary overbought conditions, we may see range-bound activity in the near future. For traders, the levels of 23,500/77400 and 23,350/76900 would act as key support zones, while resistance areas for the bulls could be found between 24,000/79000 and 24,200/79600. However, if the market dips below 23,350/76900, sentiment could change, prompting traders to consider exiting their long positions.
For the Bank Nifty, it rallied over 6 percent last week and also formed a long bullish candle on the weekly charts, which is broadly positive. For trend-following traders, the important support levels would be 53,500 and 53,100. As long as these levels hold, the uptrend is likely to continue. On the higher side, the index could move up to around 54,500-55,000, with further upside potential that might lift it to 55,300
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