Equity benchmarks extended gains over second consecutive week. The Nifty ended the week at 11914, up 497 points or 4.4%. In the coming session, we expect the index to hold intraday support of 11900 and trade with a positive bias. Hence, intraday dip towards 11900-11930 should be used to create long position for target of 12017.
The index has rallied 1150 points in 10 sessions (off September low 10790) which hauled daily stochastic oscillator in overbought territory (at 94). Thus, possibility of temporary breather at 12000- 12100 range cannot be ruled out. However, we believe, such breather should not be construed as negative, instead dips should be capitalized as an incremental buying opportunity in quality stocks amid ongoing Q2FY21 result season
The Bank Nifty closed above 200 days SMA for the first time since March, indicating revived buying demand. Going ahead, we expect Banking stocks (which carries 33% weightage in the Nifty) to resolve higher which would drive benchmark index Nifty to endure ongoing up move.
Nifty Weekly Chart
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