65,750pts would act as key level to watch
In this week, the benchmark indices witnessed selling pressure at higher levels, where the 30-share benchmark index BSE Sensex was down over 400 points.
MUMBAI In this week, the benchmark indices witnessed selling pressure at higher levels, where the 30-share benchmark index BSE Sensex was down over 400 points. Among sectors, Media index was the top gainer, rallying over 7 per cent, whereas Reality and Private bank indices shed over 1 per cent. Technically, during the week, the market consistently witnessed selling pressure near 20-day SMA (Simple Moving Average). On daily and intraday charts, the index has formed lower top formation, which supports further weakness from the current levels. We are of the view that, as long as the index is trading below 65,750 points, the weak texture is likely to continue. Below which, the index could retest the level of 65,000-64,800. On the flip side, above 65,750 points, the chances of hitting 66,000-66,200 levels would turn bright.
“For the Bank Nifty, currently, it is trading below 50-day SMA and holding lower top formation on daily charts, which is largely negative,”said Amol Athawale of Kotak Securities. For the traders now, 50-day SMA or 44,700 points would act as a key level to watch out. Below which, it could slip till 44,000-43,700 levels. On the other side, above 44,700 points, it could rally till 45000-45200 levels.