Sensex forms bullish candle
Benchmark index trading above 50-day SMA, above which the market can rally till 67,000-67,300 level
The benchmark indices witnessed volatile activity for the past one week. BSE Sensex was up 0.4 per cent. Among sectors, the realty index rose over four per cent, while the PSU bank index fell over three per cent. During the week, the index took support near 65,895 and reversed sharply after opening with a sideways decline.
“On the weekly chart, the index has formed a bullish candle and on the daily chart, it is comfortably trading above the 50-day SMA (Simple Moving Average). Above this, the market can rally till 67,000-67,300. On the other hand, selling pressure is likely to increase below the 50-day SMA or 65,900. Below this, the market may retest 65,500-65,400 levels,” says Amol Athawale of Kotak Securities.
For Bank Nifty, 50 and 20-day SMA or 44,650-44,750 could act as trend decider levels to watch. Dismissal of 44800 can push Bank Nifty towards 45,000-45,200.
On the other hand, fresh selling is possible only after breaking out of the 44,200 level. Below this, it may slip to 44,000-43,800.
