Weekly Market Wrap by Amol Athawale, VP-Technical Research, Kotak Securities
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Below the Quote on Weekly Market Wrap by Amol Athawale, VP-Technical Research, Kotak Securities
In the last week, the benchmark indices continued profit booking at higher levels, the Nifty ends 110 points lower while the Sensex was down by 156 points. Among Sectors, Auto, consumer and Metal indices corrected sharply while despite weak sentiment some buying were seen in selective Banking and Financial stocks. During the week, the market slipped below 50 day SMA (Simple Moving Average) and it breached the crucial support level of 24900/81500 but on last Friday, it trimmed some losses and eventually closed at 24860/81200. Technically, on weekly charts it has formed bearish candle on daily charts it is holding lower top formation, which is largely, negative. We are of the view that, the larger market texture is still in to the weak side but fresh selloff possible only after dismissal of 24650/80800. Below the same, market could slip till 24500-24450/80500-80300. On the flip side, 24900/81500 could be the immediate resistance zone for the bulls. Post 24900/81500 the pullback momentum is likely to continue till 25000-25050/82000-82200.
For Bank Nifty now, 50 day SMA would act as a trend decider level for the short-term traders. Above the same, it could move up till 20 day SMA or 52500. Further upside may also continue which could lift the index up to 53000. However, below 50 day SMA or 52500. Uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.
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