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• The index witnessed a gap up opening (21894-22053) and gradually inched northward as the day progressed. Consequently, daily price action formed a bull candle carrying higher high-low, indicating positive bias. In the process, Nifty clocked a fresh All time high of 22115

• The formation of higher peak and trough post recent consolidation breakout signifies acceleration of upward momentum that bodes well for ensuing uptrend towards 22300 in coming week as it is price parity of Mar-Jul 2023 rally 16828-19991 (19%) projected from Oct23 low of 18838. Thus, temporary breather should not be construed as negative instead focus should be on constructing quality stocks portfolio as strong support is placed at 21500. Our positive bias is further validated by following observations:

• A) Past six sessions decline (21834-21449) got completely retraced in just three sessions, highlighting faster pace of retracement

B) Buoyancy in global peers corroborated with our positive stance as most global indices hitting new 52-week highs • C) Stable crude prices, declining US dollar trend to act as cushion in case of minor volatility

The sequence of shallow retracement followed by elongated rallies signifies inherent strength that makes us confident to revise support base upward at 21700 as its is confluence of:

A) Placement of 10 days EMA at 21728

B) 80% retracement of past four sessions up move (21449- 2211

The index started the Mondays session with a gap up action led by large private banks and then continued to gain from strength to strength till end of the session . IN the process index also surpassed last week’s high and short term hurdle at 48150 indicating strength and formation of higher low at prior week’s swing low at 47000 which remains key short term support that also coincides with rising 10 -week ema

We expect index to eventually surpass life highs and head towards 49000 levels in upcoming earnings season as it is 123 . 6 % retracement of the most recent decline (48636 -47010 )

Structurally, index is undergoing retracement of November – December rally wherein it rallied around 15 % over 9 week period . Few weeks consolidation in the broad range of 46500 -48500 would make larger trend healthier and provide fresh entry opportunity . Hence investors should take benefit of ongoing consolidation to build long positions with focus on PSU banking space which we expect to outperform over medium term

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