Uptrend wave may continue

Mumbai: Last week, the benchmark indices continued the positive momentum, after a promising rally the Sensex was up by 1,240 points. Among sectors, PSU Bank index was the top gainer, rallied nearly seven per cent whereas despite strong momentum Media stocks witnessed profit booking at higher levels, as a result Media index shed over 3.5 per cent. During the week, the market successfully cleared the short-term resistance of 67,200 and post breakout it intensified the positive momentum.

On daily and weekly charts, the index has formed breakout continuation formation, which suggesting uptrend wave is likely to continue in the near future.

“We are of the view that, the larger texture of the market is bullish, but due to temporary overbought conditions, we could see some profit booking at higher levels,” says Amol Athawale of Kotak Securities.

For the short-term traders now, the 67,500 and 67,200 would act as a key supports zone, while 68,100-68,400 could act as a crucial resistance areas for the bulls. Buying near dips and sell on rallies would be the ideal strategy for the traders.

For Bank Nifty, for trend following traders 45,800-45,600 could be the sacrosanct support zones. As long as the Bank Nifty is trading above the same, the uptrend is intact. Above the same, the chances of hitting 46,500-46,00 would turn bright.