Sensex (29649) / Nifty (9160)
Once again, our markets opened higher which we believe was mainly on the back of US dollar index extending its losses and inching closer to the 100 mark. However, this opening lead was very short lived as we witnessed consistent selling pressure in the market and as a result; the Nifty kept falling gradually to fill the entire gap area created in the morning.
Now, due to Friday’s gap up opening, the Nifty reached our initial target of 9200 and thereafter, we witnessed a decent profit taking in the market, which was evident also after such a massive rally seen in the recent past. Despite this, the weekly chart structure still looks extremely sturdy and hence, directionally, we continue to remain upbeat on the market. We reiterate that the Nifty is likely 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 saw on Friday) 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 - (21175)
The Nifty Bank index traded in a narrow range on Friday and ended the session with a marginal loss of 0.35 percent. On the weekly charts, the index has formed a small 'Doji' candle post a gap up opening at the start of last week.
The Nifty Bank index has consolidated in a range in last couple of trading sessions. The consolidation just seems to be a breather within an uptrend. The near-term support for the Nifty Bank index is placed around 21060 - 20877, which is the recent gap area seen during the last week's opening. Any minor corrections upto the mentioned support zone should be used as buying opportunities as the broader trend continue to be positive. 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 resistance are seen around 21377 and 21882.
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