Further uptrend possible from current levels

Mumbai, Dec 12

In the last week, the benchmark indices witnessed a roller coaster activity. The Sensex was down by 440 points. Among sectors, the Metal Index was the top gainer, rallying over 1.80 per cent, whereas the Défense Index lost the most, shedding nearly 3 per cent.

During the week, after a short-term correction, the market eventually took support near 84,100 and bounced back sharply. On daily charts, it has formed a promising reversal pattern near the 50-day SMA (Simple Moving Average), which supports a further uptrend from the current levels.

“We are of the view that 84,500 and 84,100 would act as key support levels for positional traders,” says Amol Athawale of Kotak Securities.

As long as the market is trading above these levels, the positive sentiment is likely to continue. On the higher side, the index could move up to 85,400-85,600. Further upside potential may also lift the index up to 85,900-86,100.

On the flip side, below 84,100, the uptrend could become vulnerable.