Further Uptrend Likely

Mumbai: In the last session of this week, the benchmark indices witnessed a volatile activity. On a weekly basis, BSE 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 per cent.

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 80,200 level, 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.

Amol Athawale, V-P (technical research), Kotak Securities, said: “For positional traders, the 50-day SMA at 80,200 and 79,900 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 82,000, with further upside potentially lifting the index to 82,600.

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Markets quickly bounced back from its weak opening and surged ahead in intra-day trades as moderating inflation and uptick in IIP growth numbers enthused investors to resort to value buying in banking, IT and telecom stocks.”