“Last week, benchmark indices experienced volatile trading. For the week, the Nifty closed 64 points higher, while the Sensex was up 232 points. Among sectors, the IT and Digital indices performed well: the IT index rose 4.25 percent, and the Digital index gained 2.75 percent. However, the Media index fell the most, falling over 4 percent,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
“During the week, the market witnessed range-bound activity. On the downside, it found support near 23,400/74500, while it faced resistance near 23,850/75900. Technically, a bullish candle has formed on the weekly charts, and on the daily charts, it is seeing positive consolidation near the 50-day SMA (Simple Moving Average),” added Chouhan.
Furthermore, he noted, “For positional traders, the 50-day SMA or 23,600/75100 would act as an immediate support zone. As long as the market remains above this level, positive sentiment is likely to continue. On the upside, 23,850/75900 could act as immediate resistance for bulls. A successful breakout above 23,850/75900 could take the market towards 24,000–24,200/76400–77000.”
“Conversely, if the market breaks below 23,600/75100, sentiment could change. Below this level, the index could retest the 23,400–23,300/74500–74200 levels. Further declines could continue, taking the index towards 23,150/73800,” he noted.