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Nifty: 18817

Technical Outlook

• The Nifty started the weekly expiry session with a positive gap (18817-18861) and gradually inched northward as intraday dips were bought into. Consequently, in line with our view index surpassed December 2022 high of 18887 and recorded fresh All Time High. As a result, our buy on dips strategy fared well. The daily price action formed a sizable bull candle carrying higher high-low and closed at, indicating acceleration of upward momentum.

• The breakout from six months hiatus backed by across sector participation signifies rejuvenation of upward momentum. Thereby, we maintain our positive stance and expect index to head towards 19300 in coming weeks as it is confluence of:

• a) Implication of recent consolidation 18900-18500 breakout projected at19300

• b) The external retracement of December-Marchdecline 18887- 16828 isplaced at19373

• Key point to highlight is that, the current up move is backed by sturdy market breadth as current 72% stocks of Nifty 500 universe are trading above 200 days EMA which was ~63% during December high of 18887, highlighting inherent strength. Thus, we believe current breakout would gradually unfold further leg of rally as the current rally is broad based. Hence, temporary breather should be capitalised as an incremental buying opportunity.

• We expect broader market to relatively outperform wherein small cap would outshine. The Nifty Smallcap250 index has given a breakout from 20-month consolidation. Pattern implication suggest another 20-25% rally over next 12–15 month period.

• Structurally, the formation of higher peak-low on the monthly chart signifies elongation of rallies that makes us confident to revise supportbase at 18600, as it is confluence of: • a) since March Nifty has not corrected more than 400 points. In current scenario 400 points correction will mature at18611

• b) 50% retracement of current up move (18060-19011), at 18535

• c) pasttwo week’s identical low isplacedat18647

Nifty Bank: 44327

Technical Outlook

• The Daily price action formed a tiny bear candle with higher high low leading index to record new life highs and in the process also signalled follow through buying after breakout from three week falling channel in Tuesdays session .

• We expect index to gradually head towards 45500 as it retraced preceding 19 session corrective phase in just three sessions indicating breakout from consolidation pattern (44500 -43500 )

• Bank Nifty has undergone a healthy retracement over past three weeks after 15 % rally and in the process formed higher base at rising 50 -day ema placed around 43500 levels which remains key short term support for coming weeks

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