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 continued positive momentum, the Nifty ends 1.15 percent higher while the Sensex was up by 650 points. Among Sectors, Metal index outperformed, rallied 3 percent whereas Reality index shed over 1 percent.
During the week, market comfortably trade above 20 day SMA (simple Moving Average) which is largely positive. In addition, on daily and intraday charts it is holding higher high and higher low series formation, which supports further uptrend from the current levels. We are of the view that, the short-term market texture is positive but due to temporary overbought conditions we could see range bound activity in the near future. Hence, for traders now, buying on dips and sell on rallies would be the ideal strategy.
Technically, 24700/80800 and 20 day SMA or 24550/80300 would be the key supports zones while 24900-25000 / 81500-81900 could act as crucial resistance areas for the traders. However, below 20 day SMA or 24550/80300 uptrend would be vulnerable. For Bank Nifty 20 day SMA or 50700 would be the immediate reference point for the bulls. As long as it is trading above the same, the bullish sentiment is likely to continue. On the higher side, it could move up till 50 day SMA or 51500.Further upside may also continue which could lift the index till 51800. On the flip side, below 50700 it could retest the level of 50250-50000.
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