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Trend – The benchmark index has experienced consolidation within 73400-70000 for past couple of months indicatingshort term sideways trend. Hence any decisive close above 73400 may lead further rally. The overall long term trend intactto be bullish hence any minor corrections towards mentioned support zone remains as a buying opportunity. The overallmarket conditions suggests a favorable outlook for investors, with potential for further upward movement in the index.

Pattern – The monthly price action has formed a small bullish candle carrying either side shadows indicating absence ofstrength on either side . The index is sustaining above its 20, 50, 100 and 200-day SMA which reconfirms bullish trend. Onthe daily and weekly time frame, the index is consolidating on narrow range hence any either side breakout may indicatefurther direction.

Momentum – The monthly RSI is in positive terrain which signals long term rising strength

Direction – The index is expected to trade with a positive bias between 76300-70000 levels.

Volatility – The weekly ATR has reached 1588 points which means that Sensex currently has a range of 1588 points for agiven week. Although on the daily timeframe, it has highly volatile throughout the month with few ups and downs indicatingthere can by volatility expansion in the coming days. INDIAVIX (15.57) has decreased around -2.99% which meansvolatility has decreased.

Market breadth – In the month of February, Sensex closed on a flat note while Bse Midcap and Bse Small cap index havealso increased and decreased by 1.50% and -1.08% respectively. This shows that Bse Midcap is outperforming to BseSmallCap and Sensex. 388 stocks of the BSE 500 index are above the 200-day SMA indicating that the larger trend hasbeen bullish. The breadth has decreased as compared to the last month when 424 stocks were above the 200-day SMA.

Our take – The Sensex is currently experiencing highly volatile movement characterized by narrow consolidations whichsignifies intensiveness in the market. However, the index is sustaining above its key moving averages such as the 20, 50and 100-day SMAs, further confirming the positive bias. In addition, on the lager time frame our bias remains bullish, andwe anticipate potential sector rotation within this bull market. Investors are advised to consider buying on dips, as short-term corrections can present attractive entry points. Fromcurrent levels, the short to medium-term trend continues to remain bullish, with expectations of the bulls maintainingcontrol and pushing the index towards the 76000-76300 levels. However, it is important to note that an immediate supportlevel is observed around 72000. In the event of a breach of this support zone on a closing basis, a short-term correctiontowards 70800-70000 levels may occur.

Trend – The benchmark index has experienced consolidation within 22300-21000 throughout the month. Index has alsoregistered a new all time high at 22297 indicating bullish sentiments. The overall long term trend intact to be bullish henceany minor corrections towards mentioned support zone remains as a buying opportunity. The overall market conditionssuggests a favorable outlook for investors, with potential for further upward movement in the index.

Pattern – The monthly price action has formed a small bullish candle forming higher high-low indicating bullish sentiments.The index is sustaining above its 20, 50, 100 and 200-day SMA which reconfirms bullish trend. On the daily and weeklytime frame, the index is consolidating on narrow range hence any decisive breakout above 22300 levels may accelerateupside momentum.

Momentum – The monthly RSI is in positive terrain which signals long term rising strength

Direction – The index is expected to trade with a positive bias between 23000-21800 levels.

Volatility – The weekly ATR has reached 552 points which means that Nifty currently has a range of 552 points for a givenweek. Although on the daily timeframe, it has highly volatile throughout the month with few ups and downs indicating therecan by volatility expansion in the coming days. INDIAVIX (15.57) has decreased around -2.99% which means volatility hasdecreased.

Market breadth – In the month of February, Nifty closed on a flat note while Nse Small and Nse Midcap indexes have alsodecreased by -0.31 % and -0.48% respectively. This shows that Nifty is outperforming to Smallcap and Midcap caps.391stocks of the NSE 500 index are above the 200-day SMA indicating that the larger trend has been bullish. The breadth hasdecreased as compared to the last month when 416 stocks were above the 200-day SMA.

Our take – The index is currently experiencing highly volatile movement characterized by narrow consolidations whichsignifies intensiveness in the market. However, the index is sustaining above its key moving averages such as the 20, 50and 100-day and 200-daySMAs, further confirming the positive bias. In addition, on the lager time frame our bias remainsbullish, and we anticipate potential sector rotation within this bull market. Investors are advised to consider buying on dips, as short-term corrections can present attractive entry points. Fromcurrent levels, the short to medium-term trend continues to remain bullish, with expectations of the bulls maintainingcontrol and pushing the index towards the 22800-23000 levels. However, it is important to note that an immediate supportlevel is observed around 21800 In the event of a breach of this support zone on a closing basis, a short-term correctiontowards 21500-21000 levels may occur.

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