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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 sharp recovery from lower levels. The Nifty ended 0.75 percent higher, while the Sensex was up by 524 points. Among sectors, the Consumer, Auto, and Oil and Gas indices outperformed, with the Consumer index rallying 4 percent and the Auto and Oil and Gas indices gaining over 3 percent. In contrast, the Reality index suffered the most, shed nearly 2.5 percent.

During the week, the market not only cleared the 200-day Simple Moving Average (SMA) but also comfortably closed above it, which is largely positive. Technically, it has formed a reversal formation on both daily and weekly charts, supporting a further uptrend from the current levels. We are of the view that the short-term texture of the market is bullish; however, before any fresh breakout, we could see range-bound activity.

For traders now, the 200-day SMA, or the 23,900-23,750 / 78600-78100 level, would be key support zones, while the 50-day and 20-day SMAs, or the 24,150-24,200/79600-79800 levels, could represent crucial resistance areas. If the market rises above 24,200/79800, the chances of reaching 24,400-24,500/80200-80500 would turn bright. Conversely, if it falls below 23,750/78100, sentiment could change. Below this level, traders may prefer to exit their long positions.