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Published on 2/08/2022 9:53:45 AM | Source: Angel One Ltd

We have witnessed a promising start for the new week, wherein the initial hiccup got decisively bought into by the bulls - Angel One

Posted in Market Outlook| #Market Outlook #Angel One Ltd

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Sensex (58115) / Nifty (17340)

We have witnessed a promising start for the new week, wherein the initial hiccup got decisively bought into by the bulls, and the uptrend continued. The optimism across the global bourses has spread buoyancy to our market, resulting in broad-based buying interest. The benchmark index Nifty50 surged upwards for the fourth consecutive session to reclaim the 17300 level by procuring over a percent gain.

The bulls have taken complete control of the market, which is quite evident on the technical chart with its higher highs – higher lows formation. The outburst seen after the breach of the 16800 zone depicts the impeccable strength of the bulls when the scenario turns favorable. But also, in the meantime, one should not rule out the factor of profit booking as the Nifty heads towards the crucial resistance gap of the 17450 odd zone. Hence, it is advisable to monitor the profits and regularly trail them for better returns. On the flip side, 17200 is expected to cushion any minor correction, while the unfilled gap around the 17000 mark holds the sacrosanct support zone for the index.

Nifty Daily Chart

Nifty Bank Outlook - (37903)

The BANKNIFTY too started the day on a positive note in tandem with benchmark. After stabilising from the initial mix-up, the banking index resumed its northward journey. It wasn’t the similar kind of flamboyant session for this high beta space, but slowly and steadily, it certainly kept moving higher to conclude at 37900 by adding another percent to the Friday’s close.

We can now see this index reaching it’s cluster of resistance around 37900-37950 which almost coincides with the psychological barrier of 38000 as well. Hence, from hereon if we have to see next leg of the rally getting unfolded, the BANKNIFTY needs to surpass 38000 with some authority. In this case, 38500 – 38800 can be retested soon. However, considering the recent run up, we may have a muted session for the banking stocks in coming session. In our sense, if we see any gap up today, the possibility of some profit booking cannot be ruled out. Hence, traders are advised not to initiate aggressive long in case of a positive opening in the coming session. By saying this, we do not mean the trend is going to change completely, rather it should be construed as a small profit taking after a strong one way rally. The undertone remains strongly bullish and one should continue with a buy on decline strategy.

Nifty Bank Daily Chart

 

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