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Nifty : 19778

Technical Outlook

• The Nifty started the session on a positive note and gradually inched upward. As a result, daily price action formed a bull candle carrying higher high-low, indicating resumption of upward momentum after three sessions corrective move.

• We believe, ongoing consolidation in the broader range of 20000-19500 would make market healthy by cooling off the overbought condition and gradually pave the way for next leg of up move. Thus bouts of volatility owing to Fed meet outcome coupled with monthly expiry session should be utilised as an incremental buying opportunity since strong support for the Nifty is placed at 19500.

• The Nifty midcap index is oscillating in a narrow range over past eight sessions amid overbought conditions, indicating possibility of temporary breather after 27% rally (seen off March low) can not be ruled out. However, key point to highlight is that, the current up move is backed by sturdy market breadth as currently 75% stocks are trading above 200 DMA, highlighting inherent strength. Thus, any temporary breather should be capitalized to accumulate quality stocks amid ongoing earning season

• Structurally, Nifty has not corrected for more than 400 points while sustaining above 20 days EMA. Thus, we retain our support base upward at 19500, being confluence of:

• A) 38.2% retracement of current up move (18645-19991), at 19478

• B) 20 days EMA is placed at 19497

• C) Since March index has not closed below previous weeks low. Last week’s low is placed at 19562

Nifty Bank: 46062

Technical Outlook

• The Daily price action formed an inside day pattern indicating supportive efforts after couple of sessions profit bookin g . Follow through strength above Wednesday’s high would indicate resumption of upward momentum

• Structurally we maintain positive bias in the index and expect it to gradually head towards 46800 levels . Use dips as a buying opportunity

• PSU banks are undergoing a leg of profit taking after last few weeks of rally and expected to undergo higher base formation . We maintain positive stance

• Key short term support is now being revised upwards to 45200 being last Tuesday’s low that coincides with rising 20 -day ema which has been held on multiple occasions since March 2023

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