Sensex may see further uptrend
It forms long bullish candle on weekly charts, which supports further uptrend from the current levels
Mumbai: This week, the benchmark indices continued strong momentum, with the Sensex rallying over 1200 points.
Among sectors, all the major sectoral indices were traded in the positive territory but media, reality indices outperformed, both the indices rallied over 5 per cent
Technically, after a promising reversal formation the index consistently holding higher bottom formation and it is comfortably trading above 50 and 20 day SMA (Simple Moving Average) which is largely positive.
It also formed long bullish candle on weekly charts, which supports further uptrend from the current levels. For the trend following traders now, 66,300-66,150 would be the key supports levels.
“If the index succeeds to trade above the same, then it could rally till 66,900. Further upside may also continue which could lift the market till 67,200”, says Amol Athawale of Kotak Securities.
On the flip side, below 66,150, uptrend would be vulnerable. Below the same, there could see a one short term correction till 50 day SMA or 65,900-65,700.
For Bank Nifty, after a long time it has crossed 50 day SMA (Simple Moving Average) which is largely positive. It also formed higher bottom formation, which supports further uptrend. For the positional traders, 44700 or 50 day SMA would be the sacrosanct support zone. Above which, it could rally till 45600-45900. On the flip side, below 44700, it could retest the level of 20 day SMA or 44300-44000.