Overall undertone remains bullish

Mumbai: In the last week of 2023 year, the benchmark indices witnessed a promising uptrend rally. Sensex was up over 1100 points. Among sectors, auto index was the top performer and rallied 4.60 per cent whereas IT and Media indices witnessed some profit booking at higher levels.

During the week, Sensex breached the crucial resistance of 71,900 and registered a fresh all time high of 72,484.30. Technically, it has formed bullish candle on weekly charts and holing higher bottom formation on daily charts, which is largely positive. “We are of the view that, the larger texture of the market is still in to the long side but due to temporary overbought conditions, we could see some profit booking at higher levels,” says Amol Athawale, Vice-President – Technical Research, Kotak Securities.

For the trend following traders now, 71,900 would act as a sacrosanct support level. If the index succeeds to trade above the same, then it could move up till 72,500. Further upside may also continue which could lift the market till 72,800. On the flip side, below 71,900, uptrend would be vulnerable. Below which, the market could slip till 71,600-71,500. For bank nifty, as long as it is trading above 47900 ,the positive sentiment is likely to continue. Above 47900, the chances of hitting 48,800-49,000 would turn bright. On the other side, below 47,900 traders may prefer to exit out from the trading long positions. While select bouts of profit-booking could be seen going forward, overall undertone remains bullish on the back of strong macro factors and renewed FII buying in the wake of sliding US bond yields.