Sensex (29519) / Nifty (9127)
The new trading week started on a flat note citing mixed global cues. However, it was quite surprising to see that our markets extended Friday’s corrective move that we saw after hitting a new high of 9218.40 after US dollar index slipping towards the 100 mark. Due to decent stock specific profit booking, the Nifty eventually ended the session with 0.36% loss to its previous close.
At this juncture, we are just seeing traders looking to take some money off the table after enjoying this relentless up move in the recent past. There is no sign of trend reversal yet and hence, can be construed as a breather or a pull back before starting the next leg of the rally. It’s difficult to make a time-wise prediction; but price-wise, we continue to expect the Nifty to head towards 9400 – 9600 (price extension of previous up move from recent low of 7893.80) over the next few weeks. Having said that, in between some consolidation or a profit booking (like we in last two days) by momentum traders cannot be ruled out. On the lower side, 9100 – 9050 levels would provide a strong support in the forthcoming week. Traders are advised to keep using such dips to create fresh longs in the market.
Nifty Bank Outlook - (21110)
The Nifty Bank index continued its consolidation phase and traded in a narrow range to end the session with a marginal loss of 0.31 percent.
As also mentioned in our earlier reports, the broader trend of the Nifty Bank index continues to be positive and thus, we expect the markets to resume the broader degree uptrend once this consolidation phase is over. Meanwhile, traders can approach stock specific opportunities in the sector and trade with positive bias. Positionally, we expect the index to rally upto 21882 and 22932, which are the targets as per the reciprocal retracements of the previous corrective move. The near-term supports for the index is placed in the range of 21060 - 20877 whereas resistances are seen around 21377 and 21882.
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