Market is largely positive
Technically, the market’s medium-term structure is positive, but due to temporary overbought conditions, we may see range-bound activity in the near term
image for illustrative purpose
Mumbai: In this week, the Sensex gained over 850 points. Among Sectors, almost all the major sectoral indices witnessed buying interest but PSU Bank index outperformed, rallied nearly 12 per cent. Today, the Sensex registered a fresh all time high and it also formed long bullish candle on weekly charts, which is largely positive.
Technically, the market’s medium-term structure is positive, but due to temporary overbought conditions, we may see range-bound activity in the near term.
The uptrend may continue further if it crosses 73,090, which could take the market up 71,800 the sentiment could change, below which, it may slip to 71,500-71,00 levels. For bank nifty, 50 day SMA or 46,650 (Simple Moving Average) would act as a key resistance zone. Below the same, the weak sentiment is likely to continue. “For positional traders, 71,800 is a key support level. If the market stays above that level, it may jump up to 73,090 ,” says Shrikant Chouhan, Head-Equity Research, Kotak Securities.
Below which, it could retest the level of 45,500-45,200. On the flip side, above 50 day SMA or 46,650 it could move up till 47,250-47,500. Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Despite paring losses, markets managed to end up with healthy gains aided by positive global cues and falling US bond yields.”
Investors are taking a rather cautious route and are waiting for the US Fed decision on policy rate, which could signal if rate cut is happening in the near term or geo-political and inflation concerns would delay the decision.
