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In the last week the benchmark indices continued positive momentum, the Nifty ends 1.23 percent higher while the Sensex was up by 642  points. Among Sectors, all the major sectoral indices registered buying interest but PSU Bank index outperformed, gained  6.5 percent. During the week, the market bounced back sharply but on last Friday it witnessed profit booking at higher levels.

Technically, the market completed one leg of rally and now 22620/74515 (last Friday high) would be the  crucial resistance area for short-term traders. We are of the view that, as long as the market trading below 22620/74515 the correction formation is likely to continue. Below the same, the market could slip till 50 day SMA (Simple Moving Average) or 22235/73225. Further, down side may also continue which could

drag the market till 22100/ 72800.  On the flip side, fresh uptrend rally possible only after dismissal of  22620/74515. Above the same it could move up till  22775-22900/75124-75500. For Bank Nifty, 20 day SMA or 48000 could act as a sacrosanct level. Below the same, the sentiment could change. Below which, it could retest the level of 47500 -47250 or 50 day SMA.

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