Shrikant Chouhan, Head Equity Research, Kotak Securities
During the week, the market took support near the 200-day SMA (Simple Moving Average) and bounced back sharply. However, it also registered profit booking at higher levels.
Technically, on weekly charts, it has formed a bullish candle and is currently trading comfortably above the 20-day SMA, which is largely positive.
We are of the view that the market has completed one leg of correction, and for short-term traders, 25,500/83,000 would act as crucial support zones. If the market succeeds in trading above these levels, it could bounce back to 25,800-25,850/83,800-84,000.
A successful breakout of 25,850/84,000 could push the market up to 26,000-26,200/84,500-85,000. On the flip side, a decline below 25,500/83,000 would make the uptrend vulnerable.
For Bank Nifty, the 50 and 20-day SMAs at 59,500 would be key support zones. Above these levels, it could retest 60,500 and 61,000-61,300. On the flip side, below 59,500, sentiment could change.