The index staged a gap up opening 20268-20601 - ICICI Direct
![](https://portfolio.investmentguruindia.com/uploads/news/icici direct.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Nifty : 20686
Technical Outlook
• The index staged a gap up opening (20268-20601) and continued to inch northward as the day progressed. As a result, daily price action formed a sizable bull candle carrying higher high-low, indicating acceleration of upward momentum
• The breakout from four months consolidation backed by improving market breadth makes us confident to revise target to 21000 in coming weeks as it is price parity of JunDec 2022 rally (15183-18887) projected from Mar-23 low of 16828. In the process, bouts of volatility would offer incremental buying opportunity. Hence, any temporary breather should be utilized as incremental buying opportunity wherein immediate support is placed at 20300. Our positive bias is further validated by following observations:
• A) Bank Nifty which carries 35% weightage in the Nifty has witnessed faster pace of retracement as it retraced 14 weeks decline in just six weeks, indicating rejuvenation of upward momentum
• B) Percentage of stocks above 50day ema jumped from 25% at end of October to ~85% as on date indicating broad based participation in current breakout
• C) FII turned net buyers for November after two-month hiatus. This would help accelerate rally along with robust DII flows
• D) Brent prices remained subdues while decline in Dollar index to 103 is supportive of inflows to emerging markets and India
• The formation of higher peak and trough signifies elevated buying demand that makes us confident to revise support base at 20300 as its is confluence of 38.2% retracement of current leg of up move (19769-20702) coincided with Monday’s gap area (20268-20508)
Nifty Bank: 46431
Technical Outlook
• The price action formed a strong bull candle with a bullish gap underneath (44814 -45484 ) indicating in sentiment and acceleration in upward momentum . Prices continued to gain through the session leading index to close at new life highs, on expected lines
• Going forward we expect positive momentum to continue and NiftyBank to gradually head towards 47300 levels as it is 123 . 6 % retracement of July -October corrective phase (46369 -42105 ) while immediate strong support is now being revised at 45400 being Mondays bullish gap area . Buy the dips
• Structurally, index posted faster retracement of entire July -October decline in just four weeks highlighting robust price structure . Further participation of both private/public sector banks make the rally more dependable in terms of having further legs . We expect PSU banks to relatively outperform over medium term as the PSU bank index has given a multi year breakout
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
![](https://portfolio.investmentguruindia.com/uploads/news/Power 2510.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Infrastructure28.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/NKSingh57.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Boman Irani and M D, President, CREDAI.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/ITSEctor123.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Growth Chart 50.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Shripal Shah, MD & CEO, Kotak Securities.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/gold_29.12.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Import export.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Crane_Sanghavi.jpg)
Tag News
![](https://portfolio.investmentguruindia.com/uploads/news/Tradebull Securities.jpg)
Weekly option data indicates an immediate band of 24500-24200 itself - Tradebulls Securities
![Benchmark index is likely to trade volatile today. Index has support at 24100 - 24050 level - Monarch Networth Capital Ltd](https://portfolio.investmentguruindia.com/uploads/news/Monarch networth.jpg)
![Nifty opened with an upward gap and remained lacklustre within a narrow trading range throughout the day - Axis Securities Ltd](https://portfolio.investmentguruindia.com/uploads/news/Axis Securities Ltd.jpg)
![Bought Index Futures to the tune of 898.20 Cr - Axis Securities Ltd](https://portfolio.investmentguruindia.com/uploads/news/Axis Securities Ltd.jpg)