IGI Logo

After a strong close last week, our markets started positively, giving the impression of potential new highs during the initial few minutes. However, traders preferred to book some profit at record levels that led to a decline, erasing morning gains, and resulting in a 0.37% loss, to end a tad above 18750.

Bulls were disappointed as the record high close on Friday had raised expectations of quick new highs and a possible test of 19000 levels. With today’s price action, we are seeing a bearish formation known as ‘Dark Cloud Cover’ on the daily chart, and the said formation around the record high does not augur well for the bulls. In fact, a correction in terms of time or price would be healthy for the overall uptrend. However, we continue to remain upbeat and will not be surprised to see today’s move as a whipsaw or deception as we witnessed on Thursday’s session. Key levels to watch are 18600 - 18550 as a sacrosanct zone, with 18700 serving as an immediate support. On the upside, 18900 - 19000 poses an immediate hurdle.

The banking sector has been a major hindrance lately, but it is currently positioned around key supports. A positive momentum in this high-beta index can restore optimism in the broader markets, making it crucial for this sector to perform. Additionally, the Nifty Midcap 100 continues to outperform, maintaining a bullish bias. However, due to the high overbought conditions, it is important to be selective in stock choices.

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