IGI Logo

Below the Quote on Weekly Market Wrap by Amol Athawale, VP-Technical Research, Kotak Securities

In the last week, the benchmark indices registered a fresh all time high of 25268 / 82637, after a promising uptrend rally the Nifty ends 1.66 percent higher while the Sensex was up by 1280 points. Among Sectors, almost all the major sectoral indices were traded in to the positive territory but IT, Reality and Pharma indices outperformed both the indices rallied over 3 percent. During the week, the Nifty/Sensex  successfully cleared the short-term resistance of 25000/80800 and post breakout the positive momentum intensified.

Technically, it has formed bullish candle on weekly charts and it is also holding higher bottom formation on intraday charts, which is largely positive. We are of the view that, For the trend following traders now 25000/ 80800 would act as a sacrosanct support zone. As long as market is trading above the same, the bullish texture is likely to continue. On the Higher side, 25350-25500 / 82800-83300 would be the crucial resistance areas for the bulls. However, below 25000/80800 uptrend would be vulnerable. Below the same traders may prefer to exit out from the trading long positions. For Bank Nifty now, 50 day SMA (Simple Moving Average) or 51550 would be the immediate resistance zone. Post 51500 breakout it could rally up to 52000-52500. On the other side, 51000 or 10 day SMA would be the key support zone. Below the same, the sentiment could change. Below which it could slip till 20 day SMA or 50625 -50500.

Above views are of the author and not of the website kindly read disclaimer