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 witnessed profit booking at higher levels. After a roller coaster of activity, the Nifty ends 0.72 percent higher, while the Sensex was up by 500 points. Among sectors, the Defence, Capital Market, and PSU Bank indices gained the most. The Defence index rallied by 2.32, Capital Market and PSU Banks gained over 2 percent. In contrast, the Media index was the top loser, shed 4.90 percent.
Technically, after a promising uptrend rally, the market faced resistance near 23850/78740 and reversed. Additionally, on the weekly charts, it formed a Doji candlestick formation, indicating indecisiveness between the bulls and bears. We believe that the market is currently experiencing selling pressure at higher levels. However, the short-term sentiment remains positive. For traders, 23650/78200 would be a key level to watch. As long as market is trading below the same, market could retest the level of 23280/77100. Further weakness could also drag the market down to 23100/76600. Conversely, if the market rises above 23650/78200, it could bounce back to 23850/78800. A dismissal of the 23850/78800 breakout could push the market towards 24000/79300.
For the Bank Nifty, the 200-day Simple Moving Average (SMA) at 51000 would be a critical support zone. If the index remains above this level, it could maintain positive momentum up to 52200-52500. However, a close below the 200-day SMA or 51000 could alter the sentiment. If this occurs, the likelihood of hitting 50500-50400 would increase.
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