Uptrend may continue on the higher side

Mumbai, June 27

In the last week, the benchmark indices witnessed a promising uptrend rally. The Sensex gained 1650 points.

Among sectors, Capital Market and Metal Indices outperformed, both gaining over 5 per cent. Despite strong market sentiment, profit booking was observed in the Reality and Defence indices, with Reality down 1.80 percent and Defense shed nearly 1 per cent.

During the week, the market successfully cleared the crucial resistance zone of 82,700, and post-breakout, it intensified its positive momentum. Technically, on weekly charts, it has formed a long bullish candle, which is largely positive.

Additionally, it is maintaining an uptrend continuation pattern on daily and intraday charts and is currently trading comfortably above short-term averages, which is also positive. For trend-following traders, 83,300-82,700 would act as crucial retracement support zones.

“As long as the market remains above these levels, the uptrend is likely to continue on the higher side, with 84,400 serving as the immediate resistance level for the bulls,” says Amol Athawale of Kotak Securities.

Further upside could potentially lift the market up to 84,800.

In the short term, the market texture appears bullish, but buying on dips and selling on rallies would be the ideal strategy. However, if the market falls below 82,700, the uptrend could become vulnerable.

EoM.