Moving towards 200 day DMA

The markets staged a relief rally as expected and now look on course to test the 200-DMA (Daily Moving Average).

The Nifty surged by 8 per cent or 368 points to 4,942. It touched a low of 4,540 and a high of 4,971 during the week.

The Nifty closed above its short-term 20-DMA, which was 4,845. The 50-DMA and 200-DMA are 5,090 and 5,099 respectively.

If the index closes above the 200-DMA for three consecutive sessions, one may a see further upmove.

The Nifty may face resistance around 5,105-5,155-5,210 this week, while it has a support around 4,775-4,725-4,675.

The Sensex moved in a range of 1,396 points. From a low of 15,056, the index rallied to a high of 16,452 and finally ended with gains of 9.2 per cent or 1,376 points at 16,371.

The index is now close to the upside target zone of 16,650-17,200 mentioned last week. It may face resistance around 16,900-17,070-17,235 and support around 15,835-15,675-15,505 this week.

A move beyond 17,200 would be crucial for the Sensex to sustain the upmove.

Via Business Standard