Trade setup for Wednesday: Things to know before opening bell
Mumbai: In the just-concluded week, benchmark indices witnessed a range-bound movement. BSE Sensex was up 540 points. Among sectors, the pharma index gained over four per cent, while profit-booking was seen in PSU banks, media and IT stocks. Technically, the market is seeing range-bound activity near the 20-day SMA (Simple Moving Average) after a promising uptrend rally. At higher levels, it is taking resistance near 65,200 while it is taking support near 20-day SMA or 64,500.
“Our view is that, as long as the index is trading above 64,500 points, the bullish sentiment is likely to continue and the market can go up to 65,200 points,” says Shrikant Chouhan of Kotak Securities.
The uptrend may continue further due to which the index may rise to 65,500 points. On the other hand, an uptrend below 64,500 would be vulnerable as the index may retest 64,200-64,100 levels. For Bank Nifty, higher bottom formation is likely to continue. Now, for positional traders, 43,400 or 20-day SMA will be the key support, while at higher levels 44,200 or 50-day SMA and 44,500 can act as an important resistance zone.
Prashanth Tapse, senior V-P (research), Mehta Equities, says: “It was a positive end to the week for the Indian markets, with Sensex closing at 64,905, despite Hawkish comments from Fed Chair Jerome Powell.”
The rebound was attributed to WTI Oil prices hovering lower at $75 per barrel. The Metal Index showed a solid rebound among Sectoral Indices.
