Market pattern is bullish

Mumbai, May 27: Traders should gear up for a week of potential volatility driven by six big catalysts: Exit Poll (June 1st), May F&O expiry (May 30th), US GDP (May 30th), India’s GDP (May 31st), US PCE Inflation (May 31st), and May Auto Sales (June 1st). Despite Wall Street being closed on Monday for Memorial Day, confidence remains high among buyers, bolstered by investor optimism about the general elections and a drop in oil prices to $77 a barrel.

“Also, Vodafone Idea’s ₹18,000-crore FPO anchor lock-in period expires on May 27th. Bullish outlooks are noted for stocks like Maruti, GAIL, and Reliance Industries on corrective declines recommended stock: GAIL (CMP 205) with targets at 215/221 and aggressive targets at 243,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

In the last week, the benchmark indices reached a new all-time high of 75636.50. After a significant increase, Sensex was up by over 3500 points. Most major sector indices saw buying interest at lower levels, with the metal and media indices performing particularly well, rising over 3%.

From a technical standpoint, on the weekly chart, the index has formed a long bullish candle and a breakout formation on the daily chart, supporting the current uptrend.

“We believe that the overall market pattern is bullish, but due to a temporary overbought scenario, consolidation may occur. In the near term and 75,300 and 75,000 are expected to be the key support zones, while 75900-76000 could be the key resistance zones for the bulls,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.

The market has successfully broken through the major hurdle zone after approximately one and a half months, which is positive for the broader market trend and could potentially drive the market in the next few weeks or months.