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Sensex (62028) / Nifty (18315)

The benchmark index Nifty50 witnessed continuation in the uptrend consecutively for the third week and settled at the highest point in the current calendar year on a closing basis. Amidst the robust trading week, Nifty soared nearly 1.40 percent from its last week’s closure and decisively settled above the 18300 level.

The broader market participation showcased the eagerness of the bulls to levitate the market amidst favorable conditions, as all the intra-week dips have augured well for the bulls. Also, the ease in the US inflation data has acted as a catalyst that has provided buoyancy in the overall equity space, and that certainly got reflected in the price action of the key indices. From the technical aspect, the sustenance of Nifty at the higher band of the consolidation zone for most of the trading sessions indicates inherent strength. As far as levels are concerned, 18200 is likely to cushion any short-term blip, while the sacrosanct support lies around the 18100-18000 zone in the comparable period. On the flip side, 18500 is very much in the vicinity and with ongoing momentum, it is strongly anticipated to get tested soon. At the same time, an authoritative breach beyond the same could trigger the next leg of rally in the upcoming weeks.

Nifty Bank Outlook (43794)

During the last week, Bank Nifty started on a positive note and continued to rise, erasing previous week’s weakness, and closing with strong weekly gains of 2.65% closing tad below 43800.

The high beta index is now close to reaching its all-time high level as bulls continue to drive the market higher. Despite the bearish ‘Dark Cloud Cover’ candlestick pattern formation last week, this week’s upward movement has invalidated it and formed a minor higher bottom around 42500 levels. As long prices maintain this higher bottom, traders should remain positively biased and use any dips towards it to add long positions. Immediate support is seen around 43500 followed by 43300 levels. The Bank Nifty and FINNifty ended up with the highest weekly close ever and with the current momentum, prices are likely to test psychological levels of 44000 and all-time high levels of 44150 in the next few sessions. Hence remain upbeat and ideally focus on counters within the basket that would give outperforming moves.

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