Shrikant Chouhan, Head Equity Research, Kotak Securities
Today, the benchmark indices continued their positive momentum, with the Nifty ending higher by 68 points and the Sensex rising by 208 points. Among sectors, almost all the major sectoral indices witnessed positive momentum, but the Capital Market index outperformed, rallying over 2.70 percent.
Technically, after a promising uptrend, the market has formed a Doji candle pattern on the daily charts, indicating indecisiveness between the bulls and bears.
We are of the view that the short-term market outlook remains positive, but there could be a quick intraday dip if the index slips below 25,900/84100. Below this level, the market could retest the levels of 50 day SMA ( Simple Moving Average) or 25,800-25,750/83700-83500.
On the higher side, 26,000/84500 would be the immediate resistance zone for the bulls. A successful breakout above 26,000/84500 could push the market up to 26,100-26,150/84800-85000.