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Nifty : 23323

Technical Outlook

Day that was…

Equity benchmarks extended range bond activity over third session in a row and settled Wednesdays session at 23323, up 58 points. The market breadth remained sturdy with A/D ratio of 2.2:1 as broader market continued to outperform. Sectorally, Healthcare, financials outshone while FMCG extended breather

Technical Outlook

* The index pared initial gains and settled the session on a flat to positive note. Daily price has formed small bodied bear candle over third consecutive session. In the process, Nifty Midcap and small cap indices continued to clock a record highs

* Over past three sessions, index has been undergoing breather after witnessing strong recovery of 10% from last week’s low. Going ahead, a decisive close above 23400 would open the door for next leg of up move towards 23800 in the coming weeks. Failure to do so would lead to higher base formation in the broader range of 23400- 22600 with a positive bias amid stock specific action

* Further, key monitorables like Fed meet outcome, Union Budget would dictate the future trend. Therefore, any temporary breather from hereon should be capitalized as incremental buying opportunity wherein immediate support is placed at 22600. Our positive bias is based on following observations::

a. BankNifty reversed strongly from 52-week ema, maintaining its two-year rhythm, and expected to head towards 51000

b. Global setup continues to remain strong and acts as a tailwind with prospects of interest rates cut now on horizon

c. Brent prices are making lower high-low and expected to remain in $ 75-85 range for extended period

* Structurally, the formation of higher peak and trough signifies robust price structure t

a. A) 20 days EMA is placed at 22760

b. B)38.2% retracement of current up move 21281-23411, placed at 22598

Nifty Bank: 49895

Technical Outlook

Day that was: 

Nifty Bank index gained amid weekly expiry session led by private and public banks alike . Nifty Bank index closed at 49895 , up 189 points or 0 .38 %

Technical Outlook

* The price action for the day formed another small doji candle indicative of extended breather near psychological mark of 50000 levels for third session in a row . PSU banking stocks witnessed some buying demand in Wednesdays session and expected to gain further in coming weeks

* Going forward, we expect index to gradually head back to its life highs of 51133 in coming weeks in non -linear fashion . Therefore, intermediate dips or retracement of past four session gain should not be construed as sign of weakness, rather be used as an incremental buying opportunity as we expect index to form higher base above 48500 levels

* In the process, immediate support will be placed at 48500 levels for coming weeks as it is 38 . 2 % retracement of past four session gains

* As index has already undergone 10 % correction, we believe price wise correction is behind us and index to gradually continue its structural uptrend after brief period of consolidation

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