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Nifty : 23721

Technical Outlook 

 Day that was

Equity benchmarks extended gains over second consecutive session and clocked a fresh all time high of 23754. Nifty settled the session at 23721, up 183 points. However, market breadth turned in favour of declines as midcap index relatively underperformed. Sectorally, financials, IT outperformed while Metal, realty took a breather

Technical Outlook:

* The index started the session on a positive note and gradually inched northward as the day progressed. The daily price action resulted into a bull candle carrying higher high-low formation, indicating continuation of uptrend. In the process, small cap index clocked a fresh All time high.

* The formation of higher peak and trough supported by sturdy market breadth highlights strong market internals that makes us reiterate our positive stance and expect Nifty to gradually head towards 23800 in coming sessions. Thus, any temporary breather from hereon should be capitalized as incremental buying opportunity as strong support is placed at 23300. Our positive bias is further validated by following observations: a. Bank Nifty clocked a fresh All Time High as it regained upward momentum that would provide impetus for Nifty to inch northward as Bank Nifty carries ~35% weightage in Nifty b. Robust price structure backed by improving market breadth highlights strong market internals. Market breadth has shown renewed optimism as stocks above 50-day ema has improvised from 51% just before elections to 82% c. Structurally, global markets are in an uptrend and unlikely to trigger elevated volatility. Hence, temporary breather should not be construed as negative

* Structurally, the formation of higher peak and trough signifies elevated buying demand that makes us revise support base at 23300 as it is 20 days EMA coincided with last week’s low

Nifty Bank: 52606

Technical Outlook

Day that was

Nifty Bank index extended its winning streak helped by buying in large private banks ahead of Q 1FY25 earnings season . Index gained 902 points or 1 .74 % for the session to close at 52606

Technical Outlook :

* The index commenced the session on a muted note and then garnered strength led by buying in large private bank . Index accelerated rally as it surpassed past three session highs around 52000 levels to close near days high . Price action formed a strong bull candle with higher high -low indicating continuation of positive bias despite daily and weekly stochastics now reading above 90

* Going forward, we expect index to hit our short term projected target of 53000 -53500 mark . As Index has already gained 14 . 5 % over past 15 sessions, a profit booking amid overbought readings cannot be ruled out . However bias would continue to remain positive as long as higher high -low formation is maintained

* With strong rally over past two sessions, we raise the immediate support level for index at 51000 which is current week’s low and also a breakout level post election result outcome

* Price structure : Index has held its rising 52 -week EMA on numerous occasions since COVID and more recently on election outcome day . We believe major bottom has been made at 46077 . We also observe that index is maintaining its higher high -low formation on multiple time frames and remain in steady uptrend . Important point to note is that Psu banks are undergoing healthy higher base formation in the meanwhile while maintaining their positive price structure from medium term perspective

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