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 witnessed volatile activity. On a weekly basis, the Nifty ended 0.37 percent higher, while the Sensex was up by 423 points. Among sectors, the Media index lost the most, shed nearly 6 percent, whereas the Capital Market and IT indices rallied over 2 percent.
Technically, after a short-term correction last Friday, the market bounced back sharply. It not only reclaimed the 50-day SMA (Simple Moving Average) at 24400/80200 but also succeeded in closing above it, which is largely positive. Additionally, it formed a promising reversal formation on daily charts, supporting a further uptrend from the current levels.
For positional traders, the 50-day SMA at 24400/80200 and 24300/79900 would be the crucial support zones. As long as the market is trading above these levels, a bullish trend is likely to continue. On the higher side, the market could rally up to 25000/82000, with further upside potentially lifting the index to 25200/82600.
For Bank Nifty, the short-term formation is bullish, and 53000 and 52800 will be the key support zones, while 54000-54300 could act as important resistance areas for traders.
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