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Nifty : 23869

Technical Outlook

Day that was

Equity benchmarks endured its northbound journey and logged record high of 23890. The revived traction in index heavy weights like Reliance, Financials, Bharti Airtel helped Nifty settle the session at 23869, up 148 points. Sectorally, Oil & Gas, Financials remained at forefront while metal, auto extended breather

Technical Outlook:

* The index regained upward momentum after initial blip and recorded fresh All Time High as intraday dips were bought into. Consequently, daily price action resulted into bull candle carrying higher high-low, indicating continuation of uptrend. As a result, Nifty approached our target of 23800

* Going ahead, we expect index to trade with a positive bias and endure its northbound journey. The sustainability above 23800 would fuel further momentum upward towards 24200 in coming weeks. In the process, bouts of volatility owing to 12% rally (off Election outcome low) can not be ruled out. Thereby, 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 80% 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: 52870

Technical Outlook

Day that was :

Nifty Bank index continued its winning streak on Wednesday amid monthly expiry related volatility, as private banks extended their gains . Index gained 264 points or 0 .50 % for the session to close at 52870

Technical Outlook

* The index commenced the session on muted note and then gathered upward momentum to record new all time high, before marginal profit taking took place around psychological mark of 53000 as prices approached overbought reading after 15 % rally in just 16 trading sessions led daily and weekly stochastics above reading of 90 . This is reflected in a Doji candle formed on daily time frame . However bias would continue to remain positive as long as higher high -low sequence is maintained

* Going forward, we expect index to slow down momentum after strong rally over past three weeks as it approach short term target zone of 53000 -53500 mark . As Index has already gained 15 % over past 16 sessions, a profit booking amid overbought readings cannot be ruled out

* Meanwhile, 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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