IGI Logo

Sensex (62846) / Nifty (18599)

Our markets had a splendid start for the week owing to favorable developments in US markets over the weekend. However, after the initial strong opening, there wasn't much significant movement, and prices fluctuated within a range of 50-60 points throughout the day. The overall sentiment remained bullish, and eventually, the Nifty index gained more than half a percent to reclaim the 18600 mark.

On Friday, prices broke above the recent congestion zone, as we mentioned in our previous outlook, indicating that the immediate breakout momentum could drive the Nifty towards the 18600- 18700 range. In line with this expectation, the week has started on a strong note, and it's worth noting that the Bank Nifty has now entered uncharted territory after a long-awaited period. We anticipate that the Nifty index will also follow suit and test the alltime high levels of 18887.60 and potentially go even higher in the near future. However, the momentum may not be as swift due to the recent sharp rise in prices, which has led to short-term indicators entering the overbought zone and subdued intraday movements. Given this situation, it would be prudent to take advantage of dips to enter long positions and take profits at higher levels. From a technical perspective, we believe that the previous resistance around 18450-18400 will now act as a support level, while the 18780-18900 range will serve as immediate resistance.

Nifty Bank Outlook (44312)

Post Friday's robust momentum, we kick started the week with a gap up well above the previous all time high of 44151. In the initial half an hour of trade, the extended buying pushed the index towards 44500 which was then followed by some consolidation in the midst. Eventually, despite a small profit booking towards the fag end, the BankNifty managed to mark the highest ever close with the gains of nearly seventh tenth of a percent from Friday's close.

Finally, the banking index has entered an uncharted territory which everyone was eyeing for quite some time. However, the momentum was lacking after a strong opening, but considering the overall chart structure especially after recent pause such minor dips should be treated as an opportunity to re-enter. As far as levels are concerned, the resistance of 44000-44200 should now provide an immediate cushion; whereas any closure beyond the vicinity of 44500 should lift the index towards yet another magical figure of 45000.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.angelone.in/
SEBI Regn. No.: INZ000161534

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