Sensex may see quick pullback rally
For now, 64,500pts could be trend decider level, above which, it could move till 65,800pts; Otherwise, selling pressure is likely to push it to below 65,000pts
Mumbai: In this week, the benchmark indices witnessed volatile activity, after a roller coaster momentum. The 30-share benchmark index BSE Sensex closed at 64,886 points.
Among sectors, Media, Digital and Private Bank indices rallied over 1 per cent, whereas PSU Bank, Pharma, Oil, and Gas indices shed over 1 per cent.
Technically, the week opened on a positive note, but after a short-term rally, the index witnessed profit booking near 20-day SMA (Simple Moving Average). Post reversal, the market is consistently facing selling pressure at higher levels. In addition, after a long time, NSE Nifty closed below 50-day SMA that is largely negative.
“We are of the view that, the short-term market texture is negative but strong possibility of quick pullback rally is not ruled out”, says Amol Athwale of Kotak Securities.
For the positional traders now, 64,500 points could be the trend decider level. Above which, the market could bounce back till 65,800 points. Further upside may also continue which could lift the market till 66,200 points. On the other side, the selling pressure is likely to accelerate, if the index trade below 65,000 points, below the same, the market could slip till 64,700-64500 levels.
For Bank Nifty, on the lower side, 44,000 points would be the key support zone, while 44,750 or 50-day SMA and 20-day SMA or 45,000 could act as immediate hurdle areas for the bulls. Below 44,000 points, it could retest the level of 43,750-43,500.
