IGI Logo

Sensex (66684) / Nifty (19745)

During the last week, the bulls had a strong run, leading to a substantial rally of over 400 points until Thursday. However, weak guidance from IT giant INFY triggered profit booking in the IT space, and profit booking in Reliance caused a price correction on Friday, cooling off significantly from Thursday’s high. Eventually, Nifty ended the week with a 0.92 percent gain, tad below 19750.

Despite the impressive weekly winning streak for the fourth consecutive week, profit booking in key heavyweights on Friday slowed down the bull run. The market's tendency to catch complacent traders off guard was previously highlighted in our outlook, emphasizing the need to avoid undue risk. Nevertheless, the market saw some respite at lower levels on Friday, and individual counters continued to perform well, reflecting an inherent uptrend. The market's recent multi-month breakout around the 19000 level indicates a significant bull run. However, due to the recent vertical move and overbought conditions, the next upward movement may not be as swift as the recent run. It is anticipated that there may be a correction, either in terms of time or price, so the ideal strategy would be to buy on dips and book profits at higher levels. The psychological mark of 20000 that was just missed during the week remains an immediate hurdle, followed by the golden retracement target of 20100 – 20200. On the downside, the recent congestion breakout level of 19600 – 19500 is considered immediate support, and a more significant correction may occur only if this level is breached. Traders should closely monitor these levels and consider playing within this range.

Nifty Bank Outlook (46075)

The Indian equity market had an extraordinary and historic week, with both the key indices hitting new record highs. The positive momentum-driven buying persisted almost throughout the week, resulting in the banking index not only surpassing the previous record high of 45655.50 on Tuesday but also testing the significant milestone of 46000 on the weekly expiry session. On Friday, the BankNifty extended the move towards a new high of 46369.50 during early morning trade. Despite some volatility and an attempt of recovery in the midst, the index managed to settle above the 46000 mark, recording impressive gains of over 2.80% WoW.

In the week gone by, the banking index rebounded precisely from the 20 DEMA and successfully moved out of the congestion zone observed in the previous week. This sector has undoubtedly outperformed the benchmark index, and it appears to continue its strong performance in the future, potentially offering support to the overall market. However, it is crucial to be mindful that the market is showing signs of being slightly overbought. As a result, it is advisable not to become complacent and consider booking profits at higher levels to protect gains.

To Read Complete Report & Disclaimer Click Here

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

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer