Market rallies over 6500 points
The benchmark indices witnessed highly volatile activity last week. After a volatile activity, Sensex was up over 2700 points. Among sectors, IT index gained the most by 8 per cent while PSU Bank and Oil & Gas indices fell over 1 per cent
image for illustrative purpose
Mumbai, June 10: The benchmark indices witnessed highly volatile activity last week. After a volatile activity, Sensex was up over 2700 points. Among sectors, IT index gained the most by 8 per cent while PSU Bank and Oil & Gas indices fell over 1 per cent.
Technically, the market slipped below the 50 and 20 day SMA (Simple Moving Average) during the week. It also broke the 72000 and 71000 key support zone. However, it eventually found support near 70250 and bounced back sharply.
“The market rallied over 6500 points from the day's low point technically, the short-term formation of the market is positive but due to temporary overbought conditions we may see range bound activity at higher levels,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the lower side, 75500-74900 will be the key support zone while 75200-75800 may act as key resistance zone for the bulls. Buying on dips and selling on ups will be the ideal strategy for short term traders.
“Last week with the Sensex hitting a historic high of 76,795.31 with Narendra Modi sworn in for a third term as Prime Minister and the RBI raising India's GDP growth projection to 7.2% for FY24-25, markets are expected to trade positively,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Options data suggests a trading range with significant call writing and put writing. Preferred trades include buying Balkrishna Industries is recommended for buying at CMP 3202 with targets of 3,257/3,355 and aggressive targets at 3,551.
