Short-term structure bullish in mildly overbought mkt
image for illustrative purpose
Mumbai: In the past week, the benchmark indices continued the positive momentum, BSE Sensex was up by 844 points. Among sectors, almost all the major sectoral indices were traded in the green, but Reality index outperformed, rallied over four per cent.
During the week, the market held the positive sentiment and witnessed buying interest at lower levels. Technically, after a long time, the Nifty reclaimed the level of 200day SMA and currently comfortably trading above the same which islargely positive.
It also formed bullish candle on daily and weekly charts, which support further uptrend from the current levels. We are of the view that 200-day SMA or 59,500 and 59,100 would act as a key support areas for the index, while 60,100-60,500 could act as a profit booking areas for the bulls.
“The short-term market structure is bullish, but mildly overbought. Hence, buying on dips and sell on rallies would be the ideal strategy for the short-term traders,” says Amol Athawale, deputy vice-president (technical analyst), Kotak Securities.
Meanwhile, the Bank Nifty also formed bullish candle on weekly charts and successfully trading above 50-day SMA. For the Bank Nifty now, the 40,700points or 50-day SMA could be the sacrosanct support zone above which it could move up till 4,500-4,700.
