Positive Sentiment Drives NSE All Share Index bullish, eye 37,023.5 key technical level

The NSE All Share Index ended the week in a bullish note continuing the upside resumption seen after a throwback (corrective wave) which tested support level 32,065.70. The recovery in the index was largely driven by the Industrial Goods, Banking, Oil/Gas and Consumer goods sectors with insurance sector on the downside for the week.

The index is currently trading above the SMA 100 (27,455.9) signaling a continued bullish sentiment with intermediate support at 32,000 and resistance at 35,691.50.

Momentum indicator RSI 14 week period has thus retraced from the overbought territory to currently trade at 73.31 while the daily RSI 14 day period is trading at 69.97

Volume analysis continue to see a rise in activity 

 

Source: Amibroker weekly chart NSEASI

Daily trend analysis

On the daily chart below, the index is trading in the bullish zone of the Bollinger band with MACD trending towards the zero losing momentum on the bearish zone.

 

Our Expectations:

We expect the index to continue the uptrend which would be confirmed by a break above 34,384.70 minor resistances. The Index may be eyeing key technical resistance of 37,023.50 as more stocks are expected to resume the upside rally after profit taking has driven them a fair price for re-accumulation. Stocks from the banking, industrial goods and consumer goods offer potentials for investors both for short and medium term investors.

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