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Sensex (41945) / Nifty (12352)
It’s was a week of consolidation for our markets as we saw Nifty gyrating in a slender range of merely 100 points. However the overall bias remained positive despite some small intraday hiccups. The stage was set on Monday itself when we clocked fresh record highs well above the 12300 mark on a closing basis. Eventually, the muted week for benchmark index ended with gains over seven tenths of percent.
If we just have a glance at the Nifty’s price action for the entire week, it does not portray the real picture. Because although, the index did nothing, there were bundle of stocks from the broader market that did exceedingly well and kept the street buzzing throughout the week. The only disappointing factor was the underperformance of the banking space as it became the real culprit for Nifty remaining in this tight range. Nevertheless, we still remain upbeat and expect the index to slowly-steadily head towards next millstones of 12400 – 12500. The apt strategy to trade in such behaviour would be to play the range i.e. buy as close as possible to supports and vice versa. As far as support levels are concerned, 12278 – 12220 becomes a key zone for the index.
We have been quite vocal about the midcap index since last few weeks and looking at this week’s stellar run, the recent anticipation finally turned into a reality. Yes, it’s hastening towards a strong hurdle now and since a bit overbought, we may see in between some profit booking in coming days. But mind you, by no means it would be trend reversal as we expect the midcap basket to unfold further legs of the rally in coming weeks. Apart from this, the notable mover on Friday was the entire ‘Pharmaceutical’ basket, which has broken above major barrier of ‘200-SMA’ on daily chart. Do watch out for this space as we expect some good traction in this underperforming sector.
Nifty Daily Chart
Nifty Bank Outlook - (31591)
During last week, the BankNifty index underperformed and witnessed a correction of over one and a half percent to end the week tad below 31600.
In the week gone by, the Nifty index consolidated in a range while the broader markets continued their positive momentum. However, the banking space showed underperformance throughout the week as the stocks within this sector did not witness any buying interest. The index seem to be undergoing a consolidation phase within an uptrend. The immediate resistances for the index are seen around 32000 followed by 32350 mark which is the swing high. On the flipside, the immediate supports are placed around 31450 followed by 30900. Traders are advised to take a stock specific approach within this sector till we see signs of resumption of the momentum.
Nifty Bank Daily Chart
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