Bullish setup to remain intact
Analysts suggest the bullish setup in markets is likely to remain intact, supported by strong fundamentals, positive sentiment, and steady buying interest.
Bullish setup to remain intact
Mumbai, Sep 05
In the last week, the benchmark indices experienced volatile activity. After a roller-coaster session, the Sensex was up by 900 points. Among sectors, Auto and Metal indices outperformed. Auto rallied 5.51 per cent, and Metal gained 5.85 per cent, whereas the IT index lost the most, shed 1.47 percent. During the week, the market bounced back sharply from lower levels but failed to clear the crucial resistance zone of 82,000.
Technically, 80,400 remains a strong support zone for short-term traders.
“As long as the market trades above this level, the bullish setup remains intact,” says Amol Athawale of Kotak Securities.
On the higher side, the 50-day SMA (Simple Moving Average) or 82,000 would act as a crucial resistance zone for traders. A successful breakout above 82,000 could push the market towards 82,600. Conversely, below 80,400, market sentiment could change.
If the index falls below this level, it is likely to retest 79,900. Further downside may continue, potentially dragging the index to the 200-day SMA or 79,400.
“We are of the view that the market's short-term outlook remains weak, but a fresh selloff is possible only if the level of 79,700 is breached,” says Amol Athawale of Kotak Securities.
On the other hand, above 80,500, the pullback rally could continue up to the 20-day SMA (Simple Moving Average) or 81,000 and 81,300.
On the downside, if the market falls below 79,700, it could slip to the 200-day SMA or around 78,900. Further downside may also continue, which could drag the market down to 78,400.
