Further uptrend possible from current levels

The benchmark indices witnessed a promising pullback rally. The Sensex was up by 944 points. Among sectors, the Capital Market Index outperformed, rallying over 3 per cent, whereas despite strong momentum, the IT index traded into negative territory, shedding nearly 0.50 per cent.

Technically, after an early morning intraday dip, the market took support near 80,400 and bounced back sharply. From the day’s lowest point, the market rallied over 1300 points. Additionally, on intraday charts, it has formed a promising reversal pattern, and on daily charts, it formed a bullish candle, which supports a further uptrend from the current levels. Shrikant Chouhan, Head - Equity Research, Kotak Securities, said: “We are of the view that now, 81,500 and 81,200 will act as immediate support zones for the bulls.

Above these levels, a pullback formation is likely to continue, with the market potentially moving up to 82,200 or the 200-day simple moving average (SMA). “Further upside could also push the market toward 82,500. On the flip side, if the market falls below 81,200, sentiment could change. Below this level, traders may prefer to exit their long positions.”