In the last week, the benchmark indices witnessed range-bound activity. After a roller-coaster week, the Nifty ended 0.53 percent higher, while the Sensex gained 571 points. Among the sectoral indices, IT and Consumer were the top performers. The IT index rallied 4.2%, while the Consumer index gained 2.9 percent. On the other hand, the Capital Market, Tourism, and Realty indices were the worst performers, shedding more than 2.5 percent each.
During the week, the market consistently found support near the 20-day Simple Moving Average (SMA), around the 24,000/77,000 levels. On Friday, it witnessed a sharp rebound, which is largely a positive sign. Technically, the market has formed a bullish candle on the weekly charts and is also maintaining a higher-bottom formation on the daily charts, supporting the possibility of a further uptrend from the current levels.
We believe that, for positional traders, the 24,000/77,000 level (20-day SMA) and 24,200/77,600 will act as crucial trend-deciding levels. As long as the market trades above these levels, the bullish sentiment is likely to continue. On the upside, the rally could extend towards the 24,500–24,800/78,500–79,400 range. On the flip side, if the market falls below 24,000/77,000, the sentiment could turn negative. Below this level, traders may prefer to exit their long trading positions.
For Bank Nifty, the short-term texture remains positive, and the 20-day SMA, placed around 57,800, will be the immediate reference level for traders. As long as Bank Nifty trades above this level, it could move towards the 59,000–60,000 range. However, if it slips below the 20-day SMA or 57,800, the ongoing uptrend could become vulnerable.