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 to experience selling pressure at higher levels. The Nifty ended 0.49 percent lower, while the Sensex was down by 405 points. Among sectors, the IT index outperformed, rallied 3.57 percent, whereas the Real Estate index lost the most, shed over 9 percent.
Technically, the market is consistently facing selling pressure at higher levels and is holding a lower top formation on daily charts, which is largely negative. We believe that the current market texture is weak, but due to temporary oversold conditions, we could see range-bound activity in the near future.
For the bulls, the levels of 23,350/77000 and 23,450/77300 will act as key resistance areas, while 23,000/75700 and 22,900/75500 could serve as key support zones for traders. If the market surpasses 23,450/77300, it could rally till 23,600-23,650/77800-78000. Conversely, if it falls below 22, 900, /75500 selling pressure may intensify, potentially slipping till 22800-22650/75200-74700
For Bank Nifty, as long as it is trading below 49,000, weak sentiment is likely to continue. On the downside, it could fall till 47,500-47,200. Conversely, if it rises above 49,000, it could bounce back to the 20-day Simple Moving Average (SMA) or 49,500. Further upside may also continue, which could lift the index up to 50,000.
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