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

In the last week, the benchmark indices witnessed a promising rally. The Nifty ends 1  percent higher, while the Sensex was up by 737 points. Among sectors, almost all the major sectoral indices were traded in to the positive territory but Capital Market and Reality indices outperformed, with the Capital Market rallied  9  percent and Reality 9.6 percent  During the week, the market again took support near 24,500/80600 and bounced back sharply. Technically, it has formed a double bottom reversal pattern on daily charts and is currently trading comfortably above the 20-day SMA (Simple Moving Average), which is largely positive. In addition, a long bullish candle has formed on weekly charts, supporting the possibility of further uptrend from the current levels.

We believe that the 20-day SMA, around 24,800/81600, will act as a trend decider level. As long as the market remains above this level, the bullish formation is likely to continue, with 25,100/82600 serving as the immediate resistance zone for short-term traders. A successful breakout above 25,100/82600 could push the market up to 25,400–25,500/83500-83900. Conversely, if the market falls below 24,800/81600, sentiment could change, and the market may retest the 24,500/80600 level. Further downside could extend, potentially dragging the market down to 24,350/80200.