Market texture is bullish
Buying seen in PSU banks and reality stocks whereas despite strong momentum media and pharma indices underperformed
image for illustrative purpose
Mumbai: In the last week, the benchmark indices bounce back sharply, the Sensex was up by 1,457 points. Among the sectors, buying were seen in PSU banks and reality stocks whereas despite strong momentum media and pharma indices underperformed. Technically, after a short term correction, the index took the support near 200 day SMA or 59,500 (Simple Moving Average) and bounced back sharply.
It also formed long bullish candle on weekly charts which is largely 61,000 mark but succeed to close above the same. “We are of the view that, the market texture is bullish and as long as it’s trading above 60,800 the uptrend formation is likely to continue,” says Amol Athawale, Deputy Vice President – Technical Analyst, Kotak Securities.
Technically, on the higher side the market could move up till 61,500-61,800. On the flip side, below 60,800 uptrend would be vulnerable. Below 60,800 traders may prefer to exit out from the trading long positions. Meanwhile, banking nifty holding higher bottom formation, the short term texture of the bank nifty is bullish but mildly overbought. Hence we could see some profit booking at higher levels.
In the near future, 42,800-42,500 would be the strong support zone while 43,700-44,000 could act as an important resistance zone for the traders.
