Further uptrend possible from current levels

Mumbai: In the last week, the benchmark indices bounced back sharply. The Sensex was up by 2,035 points. Among sectors, almost all major sectoral indices registered positive momentum, but the IT and Auto indices outperformed, with IT rising by 6.60 per cent and Auto by 5.60 per cent.

Technically, after a strong reversal formation, the market successfully cleared the 20-day SMA (Simple Moving Average) level, which is largely positive. Additionally, it has formed a long bullish candle on the daily charts and is holding a higher high and higher low series formation on intraday charts, supporting a further uptrend from the current levels.

“For trend-following traders, the 20-day SMA (around 77,300 and 76,900) would act as key support zones,” says Amol Athawale, VP Technical Research, Kotak Securities. Above these levels, bullish momentum is likely to continue. On the higher side, 78,500-78,700 would serve as immediate resistance zones. A successful breakout of 78,700 could push the market towards 79,200. Conversely, below 76,900, the uptrend would become vulnerable. Traders may consider exiting long positions if the market falls below this level.

For Bank Nifty, it is currently experiencing non-directional activity, with traders likely waiting for either side breakout. On the upside, the 200-day SMA (around 57,500) would be the immediate resistance zone. Above this, the index could move towards 58,000-58,500. On the downside, the 50-day SMA (around 56,600) acts as a key support level. Below this, selling pressure may accelerate, and the index could retest levels of 56,000-55,800.