09-12-2022 10:44 AM | Source: Angel One Ltd
The Bank Nifty index has seen a strong weekly closure with gains of over 2.45 percent - Angel One
News By Tags | #6943 #879

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel

https://t.me/InvestmentGuruIndiacom

Download Telegram App before Joining the Channel

Sensex (59793) / Nifty (17833)

In last couple of sessions, oversold US markets gave a sharp rebound which provided the much-needed trigger for Nifty to come out of the recent congestion phase. On Friday, we had a gap up opening however we lacked follow-up buying and with some hint of profit booking, the Nifty concluded the week convincingly above 17800 by adding 1.68% to the previous weekly close

In last couple of weeks, our domestic markets maintained their sturdy structure, whereas the US bourses were continuing with their declining trend. This development was clearly restricting our key indices to surpass the higher boundary of the consolidation range despite having an inherent strength. The moment global recovery took place, we witnessed a breakout from the sturdy wall of 17700 – 17800. Importantly, the banking space was the major charioteer of this move as we saw banking index clocking gains over 2.50% and has closed at 10-months highest level. Whenever financial counters contribute to the rally, it needs to be construed as a healthy rally. Moreover, the most laggard heavyweight basket, IT showed some encouraging signs towards the fag end of the week. This provided credence to the move and adds conviction to retest the recent psychological level of 18000 in this week itself. In fact, if global peers support, we will not be surprised to see it extending towards 18200 – 18350 levels. Let’s see how things pan out going ahead.

Nifty Bank Outlook (40416)

The Bank Nifty index has seen a strong weekly closure with gains of over 2.45 percent and has also outperformed the benchmark index. The banking space has seen some strong traction in the latter half of the week as it decisively surpassed the 40000 mark and has uplifted the overall market sentiments.

On the technical parameters, the index has been on a bullish spree from the past three consecutive weeks. Currently, the index is at the highest point for the calendar year 2022, adding a strong bullish quotient to the market. As far as levels are concerned, the breakout from the 39600-39800 zone is expected to cushion any blip, while on the higher end, it is likely to march towards the lifetime high zone, a tad above the 41000 mark. Also, looking at the recent price action and placement on the daily chart, the index is likely to remain upbeat and any correction towards the mentioned support zone could be seen as an opportunity to go long in the index in the near period.

 

To Read Complete Report & Disclaimer Click Here

 

Please refer disclaimer at https://www.angelone.in/ 
SEBI Regn. No.: INZ000161534

 

Above views are of the author and not of the website kindly read disclaimer