Bullish market texture

In a first, Sensex notional turnover crosses Rs20 lakh crore on Friday. In the last week, the benchmark indices witnessed stellar rally, the Sensex gained over 2,340 points. Among sectors, almost all the major sectoral indices registered a positive momentum, but Energy index outperformed, rallied nearly eight per cent.

During the week, BSE Sensex successfully surpassed the important resistance of 68,000 and post breakout it intensified the positive momentum. On weekly charts, the index has formed long bullish candle and it also holding higher bottom formation on daily and intraday charts, which is largely positive.

“We are of the view that, the market texture is bullish and any meaningful correction should be taken as a buying opportunity to add good quality stocks,” says Amol Athawale, vice-president (technical research), Kotak Securities.

For the index traders now, the 69,250-69,000 would act as sacrosanct supports zones, while 70,000-70,300 could be the profit booking areas for the short-term traders.

However, below 69,000 uptrend would be vulnerable. For Bank Nifty, the short-term texture is bullish. For the bulls now, the 46,500-46,200 would act as a key supports zone. If it sustained above the same, then it could rally till 47,800-48,000 points.

Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Buying resumed after a day’s break on Thursday as benchmark indices notched up fresh highs on the back of positive global cues and RBI raising FY24 GDP forecast to seven per cent in its monetary policy announcement. While the central bank is positive about the country’s strong growth prospects going ahead, it remains wary of inflation and indicates that higher interest rate regime may not reverse in a hurry, which triggered a sharp volatility in intra-day trades.