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Nifty : 23259

Technical Outlook

Day that was…

Equity benchmarks took a breather after three sessions sharp up move. Nifty settled the Monday’s session at 23259, down 31 points. However, market breadth remained in favour of advances with A/D ratio of 1.8:1. Sectorally, Pharma, consumption, realty outperformed while IT, Metal underperformed

Technical Outlook:

• The index started the session on a positive note and gradually consolidated in ~200 points range. The daily price action formed a small bear candle carrying higher high-low indicating breather after recent sharp up move. In the process, Nifty Midcap and small cap clocked a fresh All Time High

• The Nifty has staged a strong recovery of 10% from last week’s low in just three sessions and recorded All Time High of 23411. Going ahead, sustainability above 23400 would pave the way 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. Meanwhile, key monitorables like Union Budget, Fed meet outcome would dictate the further course of action. Therefore, any temporary breather from hereon should be capitalized as incremental buying opportunity wherein immediate support is placed at 22600. In addition to that, the global setup continues to remain strong while brent prices are making lower high-low that would acts as a tailwind. 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 that makes us revise support base at 22600 as it is confluence of: a.

A) 20 days EMA is placed at 22700 b. B)38.2% retracement of current up move 21281-23411, placed at 22598

Nifty Bank: 49780

Technical Outlook

Day that was :

Nifty Bank index snapped three day winning streak after a choppy trading session as markets await further cues from new governments policy push and prospects on inflation trajectory . Nifty Bank index closed at 49780 , down 22 points

Technical Outlook :

• The index opened on a positive note and then consolidated in a narrow 300 points range (49700 -50000 ) near psychological mark of 50000 . Price action formed a small bear candle with higher shadow indicating some hesitancy near 50k, while maintaining higher high -low formation

• Going forward we expect index to gradually head back to its life highs of 51133 in coming weeks . Therefore intermediate dips or retracement of past four session gain should offer an incremental buying opportunity as we expect index to form higher low • 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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