Market is largely positive
Market is largely positive, supported by strong investor sentiment and stable global cues. Analysts expect steady momentum to continue in the near term.
Market is largely positive
Mumbai, Nov 21
In the last week, the benchmark indices witnessed volatile activity. The Sensex was up by 670 points. Among sectors, IT and Auto indices outperformed, with the IT index rising by 1.75 per cent and the Auto index by 1.42 percent.
Conversely, the Reality index lost the most, shedding 3.42 percent. During the week, the market comfortably traded above the 20-day SMA (Simple Moving Average) and also cleared the short-term resistance zone of 85,000. However, on last Friday, it registered profit booking at higher levels.
Technically, on weekly charts, it has formed a bullish candle, and on both weekly and daily charts, it has formed an uptrend continuation formation, which is largely positive.
“We are of the view that 85,000 and 84,500, or the 20-day SMA, will be key support zones for traders,” says Amol Athawale of Kotak Securities.
As long as the market is trading above these levels, the bullish sentiment is likely to continue. On the higher side, 85,800 could be the immediate resistance zone for the bulls. A successful breakout above 85,800 could push the market up to 86,500.
On the flip side, if the market falls below the 20-day SMA or 84,500, sentiment could change. Below these levels, traders may prefer to exit long positions.
