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NSE (Nifty): 17234

Technical Outlook

* The strong buying momentum continued in heavyweights that led the Nifty to new high of 17245. This resulted in a sizeable bull candle on daily charts of the Nifty maintaining higher high-low sequence, amid weekly expiry trade

* We believe a decisive close and sustainability above 17200 in coming session would open the door for next leg of up move towards revised target of 17600 in coming weeks. Else there would be positive consolidation in 17200-16900 range amid stock specific action that would make market healthy after past five week’s 11% rally that hauled daily and weekly stochastic oscillator in overbought territory, indicating round of temporary breather from here on can not be ruled out. Thus, any dip should be capitalised to accumulate quality stocks as over past 15 months buying on declines strategy has worked well for equity investors

* Broader market indices also extended gains as Nifty midcap scaled to afresh all-time high. However, Nifty small cap index is just 2% away from its all-time high. We believe, the small cap index has formed a higher base above 50 days EMA and expect it witness catch up activity in coming weeks

* Structurally, the formation of higher peak and trough on the larger degree chart makes us confident to revise support base upward at 16600, as it is 61.8% retracement of current up move of 16376-17153

In the coming session, the index is likely to open on a flat to positive note. We expect the index to trade with positive bias while maintaining higher high-low. Hence after a flat to positive opening use intraday dips towards 17200-17230 to create long for target of 17315.

NSE Nifty Weekly Candlestick Chart

Nifty Bank: 36831

Technical Outlook

* The daily price action formed a bull candle which remained contained inside previous session high -low range signaling continuation of the positive trend as index trade firmly above the upper band of the recent four months consolidation breakout area (36300-34800)

* Going ahe ad, we e xpect the index to maintain positive bias and gradually head towards 37700 levels in the coming weeks as it is the confluence of the me asuring implication of the recent range breakout (36300 -34800 ) and the pre vious all -time high of February 2021

* The index witnessed a faster retracement of its preceding decline as 10 sessions decline (36317 -34817 ) was completely retraced in just five sessions . A faster retracement in less than half the time interval signals strength and positive structure

* The daily stochastic has approached overbought territory with a reading of 86 after the recent 2000 points up move, hence some consolidation in the coming couple of sessions can not be ruled out . Which should not be considered as negative instead should be used to accumulate quality banking stocks for ne xt leg of up move towards 37700 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 | 35000 -35300 levels as it is the confluence of the following technical observations :

* (a) 80 % retracement of the current up move (34817 -36997 ) is placed at 35253 levels

* (b) the rising 50 days EMA is also placed at 35440 levels

* (c ) the value of the rising trend line joining the immediate previous lows is also placed around 35100 levels

* In the coming session, index is likely to open on a flat to positi ve note amid firm global cues . We expect the index to trade with positive bias while holding above 36700 levels . Hence use intraday dips towards 36780 -36840 for creating long position for target of 37080 , maintain a stoploss of 36660

Nifty Bank Index – Daily Candlestick Chart

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