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 maintained strong momentum; the Nifty gained 2.23 percent, while the Sensex rallied by over 1,900 points. Among sectors, almost all major sectoral indices traded in positive territory, but the Realty index significantly outperformed, gaining over 5 percent.
From a technical perspective, the weekly charts indicate that the index has formed a long bullish candle and is maintaining a higher bottom formation. Notably, it has successfully closed above the 50-day Simple Moving Average. We believe that the market texture is bullish; however, due to temporary overbought conditions, we could see range-bound activity in the near future. Therefore, the ideal strategy for short-term traders would be to buy on dips and sell on rallies. For traders key support levels would be 24,500/81,200 and 24,300/80,700, while resistance is expected to be between 24,900/82,200 and 25,050/82,500. However, below 24,300/80,700, traders may prefer to exit out from the trading long positions. For the Bank Nifty, as long as it is trading above 52,500, the uptrend is likely to continue. On the upper side, it could move up to 54,000-54,300.
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