Further uptrend from the current levels

The benchmark indices continued their positive momentum, with the Sensex rising by 274 points. Among sectors, the auto index was the top gainer, rallying over 1.76 per cent, whereas the reality index lost the most, shedding 2 per cent.

Technically, after a muted open, the entire day the market traded comfortably above the 20-day SMA (Simple Moving Average), which is largely positive. In addition, a bullish candle on daily charts and an uptrend continuation formation on intraday charts indicate a strong possibility of fur-ther uptrend from the current levels.

“For trend-following traders, now 77,500 would act as a key support zone,” says Shrikant Chouhan, Head – Equity Research, Kotak Securities. Above this, the uptrend wave is likely to con-tinue. On the higher side, the rally could extend till 78,300-78,500. On the flip side, below 77,500, the uptrend would become vulnerable. Below this, traders may prefer to exit their long positions.