Market is largely positive
83,000 and 82,500 would act as crucial support zones, above which, it could bounce back up to 84,500-84,700. On the flip side, a decline below 82,500 would make the uptrend vulnerable
Market is largely positive
Mumbai: In the last week, the benchmark indices witnessed a sharp bounce back. The Sensex was up over 2,850 points. Among sectors, the Capital Market and Reality indices outperformed.
The Capital Market index was up by 7.45 per cent, and the Reality index rallied by 7.70 per cent, whereas the IT index lost the most, shedding over 7 per cent. During the week, the market took support near the 200-day SMA (Simple Moving Average) and bounced back sharply.
However, it also registered profit booking at higher levels. Technically, on weekly charts, it has formed a bullish candle and is currently trading comfortably above the 20-day SMA, which is largely positive.
Amol Athawale of Kotak Securities, said: “We are of the view that the market has completed one leg of correction, and for short-term traders, 83,000 and 82,500 would act as crucial support zones.
If the market succeeds in trading above these levels, it could bounce back to 83,800. “A successful breakout of 83,800 could push the market up to 84,500-84,700. On the flip side, a decline below 82,500 would make the uptrend vulnerable.”
