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Nifty : 21895

• The index witnessed a roller-coaster move and concluded volatileweek onapositivenote. Consequently,weeklyprice action formed a bull candle carrying long lower shadow, indicatingpositivebias. Intheprocess,NiftyclockedafreshAll timehighof21928

• Adecisive close above previous swing high(21834) supported by faster pace of retracement,highlights robust price structure that bodes well forensuinguptrendtowards 22300incoming weeksas it ispriceparityofMar-Jul2023rally(16828-19991) projected fromOct23 lowof 18838. In theprocess, boutsof volatility wouldprevail amidongoingearningseasonswhich wouldoffer incremental buyingopportunity. Thus, temporary breather shouldnot be construedas negative instead focus shouldbe on constructingquality stocks portfolioas strong supportisplacedat21500.Ourpositivebiasisfurthervalidated byfollowingobservations:

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

• B) Buoyancy in global peers corroboratedwith our positive stanceasmostglobal indiceshittingnew52-weekhighs

• C) Stable crude prices, decliningUSdollar trend to act as cushionincaseofminorvolatility

• Sectorally, strongmulti sector leadership fromheavyweight acrossBFSI, IT,PSU,Oil&Gas, Infra&Powertocontinue

• Onthestock front, in largecapwepreferReliance, SBI, TCS, Divis Lab, ONGC, Titan, Adani Ports, Hindalco, TataPower while inmidcapsCoforge,Bankof India, LICHousingFinance, AlembicPharma,Graphite,SonataSoftware,KajariaCeramics, RBLBank,CIEIndia,NCCarelookinggood

• The sequenceof shallowretracement followedby elongated rallies signifies inherent strength thatmakes us confident to revisesupportbaseupwardat21500asitsisconfluenceof: A)Placementof20daysEMAat21463 B)pasttwo week’slow of 21449.

Nifty Bank: 47710

• The price action for the week formed a hammer like candle with lower shadow indicating buying demand emerging during intra week declines near psychological mark and key support of 47000 mark which has been held on couple of occasions during past one month. Index however carried lower high-low on weekly time frame for second consecutive week. 

• Going forward sustained close above last week high of 48150 would signal end of corrective phase and resumption of uptrend for target of 49000 mark in coming weeks, else a healthy consolidation in the range of 47000-48150 is likely to continue amid progression of earnings season

• Key support is placed at last week low of 47000 mark 

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

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