Market is largely positive

The benchmark indices continued their positive momentum. Among sectors, the Nifty IT and Tourism indices outperformed, rallying over 2.5 per cent, whereas the Media index corrected sharply, shedding 3.40 per cent. Technically, after a gap-up open, the market held positive momentum throughout the day. It also maintained higher highs and higher lows on intraday charts, which is largely positive.

“For trend-following traders, 78,500 would act as an immediate support zone,” says Shrikant Chouhan, Head – Equity Research, Kotak Securities.

As long as the market trades above this level, an uptrend is likely to continue. On the higher side, 79,000 would serve as an immediate resistance zone for the bulls. If that zone is successfully crossed, the market could move up to 79,300-79,500. On the flip side, below 78,500, the uptrend would become vulnerable. Below this level, traders may prefer to exit long position.