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Sensex (62294) / Nifty (18513)

We saw bulls unleashing on Thursday to surpass 18450 with some authority however the following session did not have any traction in the index. Eventually, Nifty managed to close above 18500 mark to clock highest ever weekly close. On a weekly basis, Nifty added more than a percent to the bulls’ kitty.

We have been quite vocal in all turbulent moves during this year and maintained a strong optimistic bias around key support zones. So undoubtedly when the bulls are in cruise control now, we continue to remain sanguine on the near-term outlook. Banking index and SENSEX have already entered an uncharted territory and it’s a matter of time, we would see Nifty following the same footsteps. As far as levels are concerned, 18600 and 18750 are the next levels to watch out for, above which the path towards next milestone of 19000 unfolds. The ‘Buy on decline’ strategy continues to pay rich dividend to market participants and hence, there is no harm on continuing the same. The immediate support zone is now visible in the vicinity of 18400 – 18300; whereas the actual base now shifts higher towards 18100. As long as Nifty manages to defend this territory, there is no reason to worry for.

Nifty Bank Outlook (42984)

The Bank Nifty index has continued its unprecedented move and has settled at its lifetime high levels. The spectacular action in the PSU banks has levitated the overall sentiments and made Bank Nifty march into uncharted territory on the technical chart. The index concluded the week with gains of nearly 1.30 percent and settled at new highs at 42984 levels.

On the technical aspect, the stellar bull run in the banking index continued for the eighth consecutive week and was the charioteer to uplift the market. The ongoing price action construes a robust setup for the index and is highly anticipated to continue the same in a comparable period. At present, the unfilled gap of 42550- 42500 is likely to cushion any intra-week blip, while the bullish gap present around the 42000 mark is likely to act as the sheet anchor. On the flip side, the fresh breakout has opened the potential for the index to march toward the 43500-44000 mark in the coming period. The overall structure is buoyant, where any minor correction could be seen as an opportunity to add fresh longs in the index.

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