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Nifty : 21655

Technical Outlook

Day that was… The Nifty reclaimed 21600 mark and clocked a fresh All time high of 21675. The index concluded the session at 21655 up 213 points or 1%. The market breadth remained sturdy with A/D ratio of 1.2:1. Sectorally, barring Oil & Gas all major indices ended in green led by auto, PSU Bank, metal

Technical Outlook

• The index pared initial gains after reclaiming 21600 mark. However, buying demand in the fag end helped index to regain upward momentum and settle the session near new highs. As a result, daily price action formed a strong bull candle carrying higher high-low, indicating acceleration of upward momentum

• The breakout from past six sessions range (21693-20977) signifies rejuvenation of uptrend that makes us reiterate our positive bias and expect Nifty to head towards 22000 in January 2024. In the process, bouts of volatility owing to global development and monthly expiry week can not be ruled out. Hence, dips should not be construed as negative instead it should be capitalised as incremental buying opportunity in quality stocks as strong support is revised to 21000. Our positive bias is further validated by following observations:

• A) The breakout from higher base formation post faster retracement signifies revival in upward momentum

• B) Global market setups becomes more supportive as US and European indices are coming out of two years of hiatus

• C) Declining yields, and stable currency (INR/USD) along with strong institutional flows would act as tailwinds

• The formation of higher peak and trough along with shallow retracement signifies elevated buying demand that makes us confident to retain support base at 21000 as its is confluence of 20 days EMA coincided with last week’s low of 20977

Nifty Bank: 48282

Day that was : The Nifty Bank index extended gains on Wednesday to hit fresh life highs . Nifty Bank index closed the session at 48282 , up 557 points or 1 .17 % . PSU banks outperformed with 2 % gains while private bank heavyweights also chipped in gains

Technical Outlook :

• The price action for the day formed sizeable bull candle with higher high -low that led index to new highs . After a strong open led by global cues, index continued to exhibit strength till the end amid buying across private and PSU banks

• Index surpassed last week high indicating continuation of upward momentum and expected to gradually head towards 49000 levels . We expect movement to be non - linear and therefore advise buying dips

• Meanwhile, we revise short term support to 47000 being last week’s lows that coincide with rising 20 -day ema (46937 )

• 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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