IGI Logo

Nifty: 17629

Technical Outlook

* The Nifty began session on a positive note and extended gains through the session led by strong outperformance by Banking stocks on expected lines. Price action resulted in bull candle with higher high-low and in the process achieved our target of 17600 levels. While our positive stance remains intact, after sharp rally recently, daily oscillator has reached overbought trajectory. Sustainability above 17600 in coming session would lead to extended rally. Banking index has hit new highs and is expected to rally further in coming sessions. Thus this space is expected to support in case of profit booking

* Structurally, the formation of higher high and low, signifies continuance of positive bias, which makes us confident to revise support base upward at 17100, as it is 38.2% retracement of current up move (16376 -17532) that coincides with rising 20-dema placed at 17050

* On expected lines, broader market indices have extended their winning streak aided by structural up move. However, past 17 session up move measuring 14% has led these indices to overbought trajectory and slow down in momentum can not be ruled out. However such temporary breather would provide fresh entry opportunity in quality mid cap and small cap companies

* In the coming session, index is likely to open on a positive note. We expect it to continue with its current positive momentum while maintaining higher high-low. Hence, after a positive opening use intraday dips towards 17610- 17640 for creating long position for target of 17723

NSE Nifty Daily Candlestick Chart

Nifty Bank: 37668

Technical Outlook

* The daily price action formed a strong bull candle with a higher high -low signaling continuation of the up move . The index started the session on a positive note and on expected lines moved above its last eight session triangular consolidation pattern and rallied higher as the session progressed . It scaled to a fresh all time high moving above its February high (37708 ) highlighting strength

* Going ahead, we expect the index to extend the current rally and head higher towards 38600 levels in the coming weeks being the price parity with the previous two major up move of July (34115 -36317 ) and August (34817 -37140 ) each measuring roughly 2250 points added to the current week low of 36327 signals upside towards 38600 levels

* The index is seen forming higher high -low in the larger degree chart, which gives up confident to revise the support base higher towards | 36200 levels as it is the confluence of the following technical observations :

* 50 % retracement of the current up move (34817 -37720 ) placed around 36200 levels

* The upper band of the last three months range breakout area is placed around 36200 levels

* The last week low is also placed around 36152 levels

* The daily stochastic is in uptrend after forming a higher base near the neutral reading of 50 , thus supports the positive bias in the index .

* In the coming session, index is likely to open on a positive note . We expect it to continue its current up move while maintaining higher high -low . Hence, after a positive opening use intraday dips towards 37780 -37850 for creating long position for target of 38090 , maintain a stoploss of 37680

Nifty Bank Index – Daily Candlestick Chart

To Read Complete Report & Disclaimer Click Here

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer