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Nifty : 22023

Technical Outlook

Week that was… Equity benchmarks logged a fresh all time high of 22523 and closed 2% lower at 22023. In the process, broader market relatively underperformed as Nifty midcap and small cap were down 5% respectively

Technical Outlook

* The index witnessed profit taking ahead of closure of financial year leading Nifty to close 2% lower. Price action for the week formed sizeable bear candle that engulfed past two week’s gains, indicating pause in upward momentum. Nifty Mid/Small cap indices witnessed capitulation during middle of the week leading prices to extreme oversold readings, after 9% and 16% decline respectively 

* In the upcoming week, we expect Nifty to extend consolidation in 21700-22400 zone with positive bias, amid stock specific action as prices undergo healthy retracement of recent rally. Such consolidation over next few weeks would set stage for next leg of up move, supported by Nifty heavyweights, as we expect Nifty to head towards target of 22700 in April 2024. Use dips as buying opportunity. Meanwhile we expect Nifty midcap and small cap indices to undergo base formation over next few weeks 

* The Bank Nifty snapped four-week winning streak amid profit taking on all five sessions. We expect, Bank Nifty to consolidate in the broad range of 46200 and 47200 in the coming week

Nifty Bank: 46594

Technical Outlook

Week that was : The Nifty Bank snapped four week decline amid profit taking amid concerns over deposit growth of large banks . Nifty Bank index declined 1241 points or 2 . 6 % for the week to close the week at 46594

Technical Outlook

*  The Index declined on all five trading sessions last week to form another high wave candle on Friday with lower high -low formation indicating continuation of corrective bias . Index needs to sustain above previous session high to indicate pause in downward momentum

* Going forward, we expect volatility to settle down over next few sessions . Meanwhile, key observation is that BankNifty has retraced preceding 6 session rally by over 65 % over six sessions and index to form a higher bottom around support of 46200 mark . On the higher side however 47200 would act as key hurdle on immediate basis which is 50 % retracement of past six session decline 

* Next important support for BankNifty is placed around 46200 mark which we expect to hold as it is confluence of rising 100 -day ema and 80 % retracement of six session rally (45662 -48161 ) 

* Structurally, index is undergoing a broader consolidation phase since December 2023 which we expect to 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 .

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