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Nifty : 22642.75

Technical Outlook

Day that was… Equity benchmarks recorded fresh all time high of 22768 and witnessed minor profit booking ahead of US inflation data. The Nifty settled Tuesday’s session at 22643, down 23 points. Sectorally, financials, metal outperformed while PSU Bank, pharma took a breather

Technical Outlook

* The index started the session on a positive note. However, minor profit booking from All Time High of 22768 hauled index lower. Consequently, daily price action formed a bear candle, carrying higher high-low, indicating stock specific activity amid positive bias

* Going ahead, we reiterate our positive stance and expect Nifty to head towards milestone of 22900 in coming weeks. The elongation of rallies followed by shallow retracement signifies robust price structure that makes us confident that Nifty would head towards our earmarked target of 23400 by the general election outcome. Thus, any temporary breather on set of the earning season should be capitalized as incremental buying opportunity as strong support is placed at 22300. Our positive bias is further validated by following observations:

* A. The Bank Nifty resolved out of three months consolidation (48600-44450) that has further strengthen the leadership of BFSI in next leg of up move.

* B. The current up move is backed by broad based participation as Percentage of stocks above 50days ema rebounded strongly from its bearish extreme (20% levels) to current reading of 73%

* C. The index is showing resilience despite global volatility signaling pre-election rally is brewing up in tandem with historical election year price-behaviour.

* D. Midcap index posted faster retracement of five-week corrective phase in three weeks and recorded new highs, indicating continuation of structural uptrend while small cap index is just 2% away from its All time High

*  The formation of higher peak and trough on the weekly chart signifies inherent strength that makes us confident to revise support base at 22300 as it is confluence of:

* A) 20 days EMA placed at 22325

* B) 38.2% retracement of current up move (21710-22768), at 22364

* C) last week’s low is placed at 22304

Nifty Bank: 48730

Technical Outlook

Day that was : The Nifty Bank index extended its winning streak for fifth session in a row to settle at new record highs . Nifty Bank index closed at 48730 , up 149 points or 0 . 3 %

Technical Outlook

* The Index commenced the session on a positive note and gained in first half of the session before giving up partial gains . Index thus formed a small bull candle with higher high -low formation indicating continuation of positive bias . While bias continues to remain positive as long as higher lows are maintained, index has hit overbought readings (daily stochastics 91 ) after past three week rally measuring 3000 points . Hence a healthy retracement cannot be ruled out which should be used as buying opportunity

* Structurally, index has given a breakout from three month consolidation indicating further upsides in coming weeks for the target of 49800 levels which is projection basis past one month trading range (48000 - 46200 ) . Meanwhile we expect index to hold key support of 47500

* Index has undergone healthy consolidation phase since late December 2023 which has set stage for next up move . Within this phase index has maintained its rhythm of forming higher lows near 52 -week ema indicating continuation of structural uptrend

* We are raising immediate support at 47500 as it is confluence of :

* A) 38 . 2 % retracement of recent up move (45828 -48557 )

* B) value of rising 20 -day ema at 47238

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