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Sensex (60431) / Nifty (17828)

During the last week, Nifty continued with its northward journey where the bulls capitalized on every Intra-week dip. The winning streak continued for the third consecutive week as Nifty reclaimed 17800 on a weekly basis.

Despite being a truncated week, the bulls added another 1.30% to their kitty on a week-on-week basis. With this, prices have comfortably closed above the March swing high of 17800. This is a very positive development because prices have broken above a major swing high for the first time in this calendar year. From a technical perspective, there is a ‘Rounding bottom’ formation visible on the daily time frame chart, which augurs well for the bulls. In addition, if we observe the weekly chart, we can see a fresh buy signal in the RSI smoothened with its signal line. This indicates a continuation of up move in the near term. Having said that, one should avoid being complacent as this recent up-move has been very steep without any breather and hence, some in-between pause or mild profit booking cannot be ruled out. Hence, traders should prefer to take some money off the table at higher levels, whereas, in case of any dips, one should use it as an opportunity to add bullish bets. With the continuous nine days winning streak, the support level continues to shift higher as we now see immediate support in the zone of 17700 - 17600; whereas 200-SMA around 17500 is likely to act as a sacrosanct level. On the flip side, the next set of resistance is seen at the psychological level of 18000 followed by the next swing high of 18137

Nifty Bank Outlook (42133)

It was the third consecutive week of gains for the banking index especially after the pain seen since mid of December 2022. Initially, it started with a relief move after forming a good base around 39000 but it is now getting matured to develop a good upside trend. We had a cheerful start on Monday tad above 41000 but lacked momentum resulting in a negative close on the same day. Fortunately, the banking index witnessed a smart buying interest thereafter to surpass intermediate hurdles one after another. Eventually, the index concluded yet another week in green with gains of 2.66% to the previous week's close

The bank index has made a strong comeback by surpassing the descending trendline resistance on Tuesday and the psychological mark of 42000 on the final day of the week. The way banking space has outperformed is indeed remarkable especially with no relevant intraday declines. Going ahead, the previous resistance of 41600-41800 should provide a cushion, whereas the next important juncture is seen around 42500 - 43000

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