Market indecisive between bulls and bears

Mumbai: In the last session of the week, benchmark indices witnessed range-bound activity. After a roller-coaster activity , the Sensex was up by 400 points. Among sectors, PSU Banks and Defense indices outperformed; PSU Banks gained 5 percent, and Defense rallied 4 per cent. Conversely, the Media index was the top loser, shedding 4 per cent. During the week, the market opened with a gap up, but after a strong start, it registered some profit booking at higher levels.

Technically, on weekly charts, it has formed a Doji candlestick pattern, and on intraday charts, it is witnessing a range-bound formation, indicating indecisiveness between the bulls and bears. “We believe that the short-term market outlook remains positive, but a fresh uptrend rally is possible only after the dismissal of 79,100,” says Amol Athawale, VP Technical Research, Kotak Securities.

Above this level, the market could move up to the 200-day SMA (Simple Moving Average) or 80,000-80,200. Further upside could continue, lifting the market to 80,600-80,900. On the downside, below 78,400, the market could retest levels of 78,100-77,900. A breakdown of 77,900 could accelerate selling pressure, and the index could slip further to 77,200.