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Below The Quote on Weekly Wrap 16 - May Up by Amol Athawale, Vice-President Technical Research, Kotak Securities Ltd

“In the last week, the benchmark indices witnessed a promising uptrend rally. The Nifty ends 4.2 percent higher, while the Sensex was up by 2875 points. Among sectors, all the major sectoral indices traded in positive territory, but Defense, Reality, and Capital Market indices outperformed. Defense gained 17 percent,  Capital Market 11.50 percent and Reality 10.85 percent . Technically, on weekly charts, the index has formed a long bullish candle, and on daily charts, it is holding a higher high and higher low series formation, which is largely positive.

 We are of the view that, in the short-term, the market texture is bullish, but buying on dips and selling on rallies would be the ideal strategy for traders. On the downside, 24,665/81300 and 24,400/80500 or 20 day SMA (Simple Moving Average) would act as key support levels, while 25,100/82700 could serve as an immediate resistance zone for the bulls. A successful breakout above these levels could push the market toward 25,500/83800. However, if the index falls below 24,400/80500, the uptrend could become vulnerable.

 For Bank Nifty, the higher bottom support is placed near  54,400. As long as it is trading above this level, the positive momentum is likely to continue. On the higher side, it could retest the level of 56,000. Further upside may also continue, potentially lifting the index to 56,500.”

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