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Nifty : 22598

Technical Outlook

Day that was…

Equity benchmarks extended gains over fifth consecutive session tracking firm global cues. Nifty gained 69 points to settle the session at 22598. However, market breadth turned in favour of advances. Sectorally, FMCG, realty , pharma outshone while financials, metal took a breather

Technical Outlook

* The fag end buying demand helped lackluster session to settle on a positive note. As a result, daily price action resulted into a small bull candle with lower shadow, highlighting positive bias as buying demand emerged at elevated support base. Meanwhile, Nifty midcap index continued with its record setting spree

* The sustenance above 20 days EMA highlights inherent strength that bodes well for continuation of uptrend. We expect Nifty to challenge All Time High of 22800 in coming weeks. In the process, volatility would remain high as expectations related to General election outcome would have bearing on market direction coupled with progression of Q4 earning season. Thus, buy on dips would be the prudent strategy to adopt. Our positive stance is based on following observations: 

A) Nifty has historically corrected 6% during polling phase in past four elections and three times hit new highs around election outcome. In current scenario , index staged a rebound after correcting 4.5% from life highs 

B) Over 70% of Nifty constituents indicate further upsides at current juncture. Banking, capital goods, Oil & Gas, Power, Auto and FMCG heavyweights are indicating bullish undertone 

C) Major global indices are at life highs. Although in the short term our markets are ignoring those cues, once General election related anxiety settles down, strong global setups would act as tailwind for further market direction • Structurally, formation of higher peak and trough makes us confident to retain support base at 22000 as it is 80% retracement of current up move (21821-22629)

Nifty Bank: 47782

Technical Outlook

Day that was…

The Nifty Bank index traded volatile amid profit taking in some heavyweights in an weekly expiry session . Index concluded session at 47782 , down 266 points or 0 .55 %

Technical Outlook

* The Bank Nifty index recovered smartly in last half hour of trade amid expiry related volatility as buying demand emerged around 47400 resulting in potential higher bottom against last week low and key support of 47000 mark . Price action formed a hammer like candle with long lower shadow highlighting supportive efforts We maintain overall positive stance and expect extended consolidation in the broad range of 49000 -47000 levels . Hence buying dips would be prudent approach . PSU banking stocks witnessed buying demand at lower band of consolidation and expected to do well

* Since late Jan’24 low of 44633 , Index is following a well channeled up move forming higher bottoms in the vicinity of rising 100 -day ema (47050 ) . Last week index respected this price behaviour and staged recovery from 47000 mark

* Structurally, current decline from life highs is a healthy retracement and therefore does not alter positional bullish stance . We therefore expect that current decline would result into a higher base formation around 47000 followed by resumption of rally towards highs

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