Indian equity markets had a great trading day amid follow-up buying in the benchmark index. General buy-in provided much-needed impetus to lift market sentiment. The benchmark indices continued their positive momentum for the second day in a row, the Nifty closed 112 points higher while the Sensex rose 390 points. Nifty rose for the second consecutive day on Jan. 18, buoyed by positive Asian cues and dovish signals from the Bank of Japan this morning. At the close, the Sensex was up 0.64% to 61045 and the Nifty was up 0.62% to 18165. Technically, the market continued its positive momentum and after a long time the index managed to close above the 20-day SMA (Simple Moving Average), which is largely positive. However, 18300/61500 could serve as a profit booking zone for the trend following traders. We believe that as long as the index trades above 18100/61000 or the 20-day SMA, the chart's texture suggests that the positive sentiment is likely to continue in the near term. Above 18100/61000 the index could rally to 18300/61500 and it could continue higher which could take the market to 18500/62000 or the 50-day SMA. On the other hand, uptrends below 18000/60500 would be vulnerable.
Resistance: 18200, 18300,
18400
Support: 18100, 18000, 17900
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