Nifty kick-started the month on a positive note as we witnessed gap up opening on back of favourable clues from global bourses. Index continued its bullish momentum of last three sessions and rallied above 9900 mark. However, it trimmed off some of its intraday gains as we saw a profit booking correction of around 100 points from intra day’s high of 9931. Eventually, it formed a Bullish candle on daily scale for fourth consecutive session. It also moved above previous swing high of 9889 and thus we are observing High Highs - Higher Lows sequence on both daily and weekly scale, which is a positive sign as per ‘Dow Theory’. From last few sessions, we are witnessing strong market breadth and consolidation breakout in many sectoral indices, indicating broad based buying interest. Momentum oscillator RSI is also placed positively on daily chart and thus, we may see continuation in up move in coming days too. Going forward, the resistance for Nifty is placed at 10200-10300 levels, while support is inching higher to 9700 and then 9500 zone.
Bank Nifty Outlook
Bank Nifty started the session with gap up opening and out-performed the benchmark index as it rallied by 3.43%. It moved above 20200 levels but due to some correction from higher levels, it concluded the session a tad below 20000 mark. It continued its winning streak for fifth consecutive session and formed a bullish candle on daily chart. We are witnessing positive crossover of 5 DEMA and 20 DEMA, which is a positive sign. At current juncture, RSI oscillator is moving northward on both daily and weekly chart and thus showing strength in the index. Considering overall chart structure, we may see further bounce in Bank Nifty towards 20500 and 21300 levels, while supports are inching higher to 19300 and 18700 zone
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