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Nifty : 21659

Technical Outlook

Day that was…

Equity benchmark snapped two days losing streak and settled the weekly expiry session on a positive note. The Nifty settled the session at 21659, up 141 points or 0.7%. The market breadth remained positive with A/D ratio of 2:1 as Nifty midcap, small cap index outperformed by gaining >1%, each. Sectorally, all major indices ended in green led by financials, realty, FMCG.

Technical Outlook

• Defying the global trend, equity benchmark started the session on a positive note and continued to inch upward as the session progressed. The daily price action resulted into a bull candle carrying higher high-low, indicating positive bias. In the process, Nifty midcap index clocked a fresh All time High.

• The shallow retracement followed by elongation of rallies signifies robust price structure that makes us confident to reiterate our positive stance of Nifty heading towards psychological mark of 22000 in the coming weeks. Key point to highlight since end of Oct-23 is that the intermediate corrections have been limited to the tune of 3% while time wise correction has not exceeded for more than 2-3 sessions, highlighting inherent strength. Thus, any breather should be capitalized to accumulate quality stocks ahead of Q3 earning season as we expect Nifty to hold the key support threshold of 21300. Our positive bias is further validated by following observations:

• A) The Bank Nifty formed Morning star candlestick pattern on the daily chart indicating extension of prevailing uptrend in coming sessions

• B) Falling crude along with declining yields would act as tailwinds

• The elongation of rallies followed by shallow retracement exhibits inherent strength that makes us confident to retain support base at 21300 as its is confluence of:

• A) 61.8% retracement of recent up move (20977-21834)

• B) 20 days EMA placed at 21297

• C) Last week’s low of 21329

Nifty Bank: 48196

Technical Outlook

Day that was :

The Nifty Bank index snapped four sessions corrective phase and reclaimed 48000 mark . Nifty Bank index closed the session at 48196 , up 1 % for the day . Meanwhile, Nifty PSU Bank index clocked a fresh All Time High of 5875

Technical Outlook :

• The index started the session on a positive note and gradually extended gains as intraday dips were bought into . The formation of strong bull candle post follow through strength to last sessions hammer candle that resulted into a Morning star pattern, indicating resumption of uptrend .

• The emergence of buying demand from 20 days EMA exhibits inherent strength that bodes well to challenge the Life highs of 48636 and gradually head towards 49000 levels in coming weeks . In the process, bouts of volatility would prevail onset of Q 3 earning season . Thus, buying on dips would be the rewarding strategy

• Meanwhile, we revise short term support to 47400 being past two week’s lows that coincide with rising 20 -day ema which we expect to hold

• Structurally, index formed a higher bottom after strong breakout above 46300 levels in faster time highlighting robust price structure and elevated buying demand . Further, participation of both private/public sector banks make the rally more dependable with large caps being in focus

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