Market is largely positive

In the last session of the week, the benchmark indices witnessed a promising rally. The Sensex was up by 700 points. Among sectors, the Metal Index outperformed, rallying over 5.63 per cent, whereas the FMCG index was the top loser, shedding 3.68 per cent. During the week, the market took support near the 50-day SMA (Simple Moving Average) and bounced back sharply.

Amol Athawale of Kotak Securities, said: “Technically, on weekly charts, it has formed a bullish candle, and on daily charts, it is holding an uptrend continuation formation, which is largely positive.”

For trend-following traders, 85,500 and 85,000 would act as key support zones. As long as the market is trading above these levels, the bullish momentum is likely to continue. On the higher side, the market could continue rallying till 86,200.

Further upside may also push the index up to 86,700. However, below 85,000, the uptrend would become vulnerable.