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Published on 2/12/2019 10:26:54 AM | Source: Angel Broking Pvt Ltd

We witnessed some profit booking to conclude the week tad above the 12050 mark - Angel Broking

Posted in Market Outlook| #Market Outlook #Angel Broking Pvt Ltd

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Sensex (40794) / Nifty (12056)

In the penultimate week, we saw some indecision in the market around 12000 which eventually resulted into a decline towards 11900. However, on Monday, the week kick started on an optimistic note and marked a fantastic intraday rally to reclaim 12000 with some authority. Clearly the opening day had set the tone for the rest of the week. In-line with this, the rally extended as the week progressed and finally on Thursday, the Nifty surpassed its previous record highs to mark a new number of 12158.80. However on Friday, the Asian bourses once again looked a bit nervous and as a rub off effect of the same, we witnessed some profit booking to conclude the week tad above the 12050 mark.

We have been quite vocal since last few weeks that it’s a matter of time we would see Nifty clocking fresh record highs and finally it’s a reality now. In fact, despite the penultimate week’s tail end decline, we remained firm and advised using this as a buying opportunity. The strategy played out well and in spite of slightly weak day on Friday, we continue with our positive stance on the market. The benchmark index has registered a highest ever weekly as well as Monthly close and the way charts are shaped up, we expect continuation of the northward trajectory. For the coming week, our projected targets are around 12200 – 12290 and if we stretch a time period a bit, we will not be surprised to see index heading towards 12400 – 12500, which coincides with key Fibonacci ratios. On the lower side, 12000 followed by 11883 are now likely to provide good support for the market.

Traders are advised not to remain sceptical as the recent rally has been vertical in nature and looks a bit overbought. In such a strong trend, market generally tends to give gravity defying moves and hence, one should refrain from taking contradictory bets with a positional view. Rather use declines to go long and keep focusing on potential stocks which are likely to participate in the probable rally.

Nifty Daily Chart

 

Nifty Bank Outlook - (31946)

During last week,BanknIfty rallied higher and surpassed the 32000 mark for the first time ever. The stocks within the banking space has shown an outperformance in last few weeks wherein the private sector as well as the PSU banking names have participated in the recent upmove. As of now, there are no signs of reversal on the charts and hence we continue with our optimistic stance on this sector. Thus, traders are advised to continue to trade with a positive bias and use any declines near the supports as a buying opportunity. The immediate supports for the index are placed around 31660 and 31390 whereas the possible target areas for short term are seen around 32315 and 32500.

Nifty Bank Daily Chart

 

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