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Below the Quote on Sensex by Sachin Gupta, VP – Technical Research at Choice Equity Broking Private Limited

"The BSE Sensex closed at 72,472.33, gaining 879.09 points (+1.23%). The index opened at 71,776.67, touched an intraday high of 72,669.20 and a low of 71,739.49. Following the recent decline, the benchmark staged a strong recovery and sustained its upward momentum through the session, reflecting renewed buying interest and short-covering activity.

From a price-action perspective, the 71,700–72,000 zone remains the immediate support area, while 72,800–73,100 is the key resistance band. The broader trading range stands between 71,700 and 73,100, with the overall bias remaining sideways. Sustaining above the immediate support zone could help preserve the recovery, while a decisive breakout above 73,100 would strengthen the short-term outlook.

Sector-wise, Focused IT, Information Technology, Bankex, Auto and Consumer Durables were among the major gainers, with technology and banking stocks leading the recovery. The strength across these sectors supported the benchmark’s sharp rebound after the recent selling pressure. Overall, sectoral participation improved, although the index still needs to overcome its immediate resistance zone to confirm a sustained recovery.

Technically, the Sensex opened with a 183-point gap-up and extended its recovery following the recent decline. The strong upward move suggests short-covering alongside renewed buying interest, with the daily chart forming a bullish green candle. Meanwhile, the weekly candle formed a Doji, indicating indecision in the broader trend. The RSI stands at 38.67, above its RSI-based MA of 32.86, suggesting an improvement in momentum, although the indicator remains below the neutral 50 mark.

Options data indicates that 72,000 Put writers hold the highest OI concentration on the lower side, making this an important support level. On the upside, 73,000 Call writers continue to hold the highest OI, creating a significant resistance zone. The PCR at 1.10 suggests a relatively balanced options setup with a slight positive tilt. The sustainability of Put writing near 72,000 and any unwinding of Call positions near 73,000 will be important in determining the next directional move.

Looking ahead, the Sensex has shown encouraging signs of recovery, but the broader structure remains sideways until a decisive breakout emerges. Holding above 71,700–72,000 could support further upward movement towards 72,800–73,100, while rejection near resistance may lead to renewed consolidation. The improving RSI and strong daily close indicate that buying interest is returning, although the weekly Doji signals that confirmation is still needed. Traders should monitor the 73,000 zone closely, as a sustained move above it could strengthen bullish momentum, whereas a fall below 71,700 may weaken the recovery."

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