Markets continue their positive momentum

Today, the benchmark indices continued their positive momentum, with the Sensex up by 510 points. Among sectors, the IT index outperformed today, rallying 2.55 per cent, whereas PSU Bank and Capital Goods indices registered intraday profit booking at higher levels.

Technically, the market opened on a negative note, but in the second half of the day, it successfully cleared the 74,200 resistance mark, and post-breakout, positive momentum intensified. Additionally, it formed a bullish candle and is also holding an uptrend continuation pattern on intraday charts, which is largely positive.

“For traders now, 74,200 and 73,900 would act as key support zones,” says Shrikant Chouhan, Head - Equity Research, Kotak Securities.

As long as the market is trading above these levels, a pullback formation will continue. On the higher side, it could bounce back to 75,000.

Further upside may also continue, potentially lifting the index to 75,500-75,700. However, below 73,900, sentiment could turn negative. Below this level, the chances of hitting 73,300-73,000 would increase.