Further uptrend from current levels likely
On weekly charts, the index has formed long bullish candle which indicating continuation of uptrend.
image for illustrative purpose
Mumbai: This week, the benchmark indices continued the positive momentum with the Nifty ending up 1.35 per cent per cent higher while the Sensex was up by 970 points.
Among sectors, auto and private bank indices gained the most. Auto gained over 4 per cent and private banks over 3 per cent. Whereas PSU Bank index corrected sharply, shedding over 4 per cent.
Technically, after a strong uptrend rally, the index comfortably trading above 10 day SMA (Simple Moving Average) and it also holding higher bottom formation which supports further uptrend from the current levels. In addition, on weekly charts, the index has formed long bullish candle which indicating continuation of uptrend.
“We are of the view that, currently the market is witnessing positive consolidation. The short term texture suggesting, as long as it is trading above 10 day SMA or 61,500, the positive sentiment will
continue” says Amol Athawale, Deputy Vice President – Technical Analyst, Kotak Securities.
Above 61,500, the index is likely to move till 62,500-62800. On the flip side, bulls may prefer to exit out from the trading long positions, if the index trades below 61,500.
Below the same, the market could slip till 61,200. Further downside may also continue which could drag the index till 61,000. About Bank Nifty: for the trend following traders now, 43,500 would be the
sacrosanct level to watch out, above which, it could rally till 44,000-44,300. On the other side, quick short term correction possible if it succeeds to trade below 43,500. Below the same, it could slip till 43,000-42,800.
