Market is largely positive

Mumbai, Nov 28

In the last week, the benchmark indices witnessed a sharp recovery from lower levels. The Sensex was up by 474 points.

Among sectors, Financial Services index outperformed, rallying over 2.25 per cent, whereas the Défense index lost the most, shed 1.25 per cent. During the week, the market found support near the 20-day SMA (Simple Moving Average) and bounced back sharply. Technically, it has formed a promising reversal pattern on daily and intraday charts, and it is also holding a higher bottom formation on daily charts, which is largely positive.

“We are of the view that the short-term market outlook is positive and uptrend formation is likely to continue in the near future,” says Amol Athawale of Kotak Securities.

For positional traders, 85,300 and 85,000 would act as key support zones. On the higher side, the uptrend is likely to continue till 86,100. Further upside may also persist, which could lift the index to 86,500-86,800. On the flip side, below 85,000, the uptrend would become vulnerable. Below this level, the market is likely to retest 84,500-84,300.