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 bounced back sharply, with the Nifty ends 1.93 percent higher while the Sensex was up by 1130 points. Among sectors, all the major sectoral indices traded in positive territory, with the Defence and Metal indices gaining the most. The Defence Index gained 10.50 percent, and the Metal Index rallied 9 percent. During the week, the Nifty/Sensex slipped below the crucial level of 22,000/72800. However, it bounced back sharply. Technically, it has formed a reversal formation on both daily and weekly charts, supporting a further uptrend from the current levels. Additionally, a long bullish candle on the weekly charts and an uptrend continuation formation on intraday charts also support the uptrend.
We are of the view that 22,400/74000 and 22,300/73700 would be key support zones for positional traders. If the market succeeds in trading above these levels, it could bounce back to the 20-day SMA or 22,750/75200. Further upside may continue, potentially lifting the indices up to 22,900/75700. On the flip side, if the market falls below 22,300/73700, the sentiment could change, and traders may prefer to exit their long positions.
As for the Bank Nifty, it is currently witnessing positive consolidation. For short-term traders, the double bottom support zone at 48,000 will act as a critical level. If it trades above this level, it could move up to the 50-day SMA, targeting 49,300 and 49,700. However, if it goes below 48,000, the uptrend would become vulnerable.
Above views are of the author and not of the website kindly read disclaimer
