Market hovering in green zone
For now, 83,000 and 82,700 would act as key support zones, above which it could bounce back to 83,500-83,700
Market hovering in green zone
Benchmark indices bounced back sharply, with the Sensex rising by 650 points.Among sectors, Energy, Reality, and PSU Banks indices rallied over 1.5 per cent, whereas despite the strong market momentum, the Capital Market index shed 1.25 per cent.
Technically, after a weak open, the market took support near the 20-day SMA (Simple Moving Average) at 82,300 and bounced back sharply. On daily charts, it has formed a long bullish candle, and on intraday charts, it has formed a promising reversal pattern, which is largely positive.
“For day traders, 83,000 and 82,700 would act as key support zones”, says Shrikant Chouhan, Head - Equity Research, Kotak Securities.
As long as the market is trading above these levels, the pullback formation is likely to continue. On the higher side, it could bounce back to 83,500-83,700.
On the flip side, below 82,700, the sentiment could change. If the market falls below this level, traders may prefer to exit their long positions.
