Sensex in bullish zone
72,700 could act as a crucial resistance zone for the bulls
image for illustrative purpose
Mumbai: In the past week, the benchmark indices bounce back sharply, and the Sensex was up by 830 points.
Among sectors, auto index outperformed others, rallying 4.40 per cent whereas media, metal and FMCG stocks witnessed profit booking at higher levels.
During the week, after a short-term correction, the market took the support near 70,900 and reversed. Post reversal, Nifty/ Sensex rallied over 1,700 points.
Technically, on weekly chart, the index has formed bullish candle and on intraday charts, it is holding uptrend continuation formation, which is largely positive.
“We are of the view that, the current market texture is bullish but 72,700 could act as a crucial resistance zone for the bulls. Post 72,700 breakout, the market could move up till 73,000-73,200,” says Amol Athawale, Vice President-Technical Research, Kotak Securities. On the flip side, below 71,700 the sentiment could change. Below 71,700, the market could retest the level of 70,900-70,700.
For bank nifty, the short term texture is into the bullish side but 50 day SMA or 46,815 (Simple Moving Average) could act as a key resistance area for the traders.
If it sustained above the same, then it could move up till 47,300. However, below 45,900 traders may prefer to exit out from the trading long positions.
There would be bouts of intra-day volatility going ahead, while investors would be closely watching the US Fed's move on interest rates going ahead.
