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Nifty : 23398

Technical Outlook

Day that was…

Equity benchmarks clocked a fresh All Time High of 23481 and settled the session at 23398, up 76 points or 0.3%. The market breadth remained strong with A/D ratio of 1.5:1 as broader market continued to outperform. Sectorally, IT, Consumer Durables, auto outshone while FMCG extended breather

Technical Outlook

* The index witnessed a gap up opening (23323-23480) and started the session on a positive note. However, minor profit booking from All Time High pared some of initial gains. As a result, daily price action formed a small bear candle carrying higher high-low, indicating consolidation amid positive bias. In the process, Nifty Midcap and small cap indices endured their record setting spree

* The index has been undergoing time-wise correction over past four sessions after witnessing strong recovery of 10% from last week’s low. Going ahead, a decisive close above 23400 would open the door for next leg of up move towards 23800 in the coming weeks. Failure to do so would lead to higher base formation in the broader range of 23400-22800 with a positive bias amid stock specific action

*  In the upcoming weeks Union Budget would be the key monitorable which would dictate the future trend. Therefore, any temporary breather from hereon should be capitalized as incremental buying opportunity wherein immediate support is placed at 22600. 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 22800 as it is 20 days EMA placed at 22874

Nifty Bank: 49846

Technical Outlook

Day that was: 

Nifty Bank index closed flattish after a range bound session on Thursday . Nifty Bank index closed at 49846 , up 189 points or 0 .38 %

Technical Outlook

* The price action for the day formed small bear candle indicating continuation of breather near psychological mark of 50000 levels for fourth session in a row

* Going forward, we expect index to gradually head back to its life highs of 51133 in coming weeks in non -linear fashion . Therefore, intermediate dips or retracement of past four session gain should not be construed as sign of weakness, rather be used as an incremental buying opportunity as we expect index to form higher base above 48500 levels

* 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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