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Nifty : 22530

Technical Outlook

Day that was…

Equity benchmarks snaped two weeks winning streak and settled the week on a subdued note amid profit booking head of General Election outcome. The Nifty concluded the week at 22531, down 1.85%. Meanwhile, broader market relatively outperformed as Nifty midcap and small cap lost 1.3% and 1%, respectively. Sectorally, Metal, PSU, Energy, realty outperformed while IT, oil & gas extended correction

Technical Outlook:

• The index started the week on a positive note and clocked a fresh All-time high. However, profit booking from higher levels dragged Nifty around 22500. Consequently, weekly price action formed a bear candle carrying higher high-low, indicating profit booking amid elevated anxiety ahead of General Election outcome

• Along with robust technical set up and exit poll outcome favouring stable government at the center, markets are likely to begin the week on a buoyant note. We also expect volatility to subside post-Election outcome. Hence, we reiterate our positive stance and expect Nifty to head towards our earmarked target of 23400 in coming weeks backed by the strong global cues. In the process, 22400 would continue to act as key support. Thus, any temporary breather should be capitalised as incremental buying opportunity. On the sectoral front, Banking, PSU, Capital Good & Infra, Defense, Power and Telecom would be in focus

• Structurally, key point to highlight is that, since start of CY24, Nifty has not corrected for more than 5% on multiple occasions despite host of negative news. Consequently, Nifty has formed a strong higher base formation at 21800. For the upcoming week, key support is placed at 22400 being confluence of following observations:

• A)50 days EMA placed at 22392

• B) 50% retracement of current up move (21821-23110)

• C) Past two week’s low of is placed at 22404

Nifty Bank: 48983

Technical Outlook

Day that was :

The Nifty Bank index gained for second session on Friday ahead of Lok sabha exit polls . PSU bank index gained 1 .28 % while private bank index chipped in with 0 . 5 % gain . Nifty Bank index closed at 48983 , up 0 .62 % or 300 points

Technical Outlook :

• The Bank Nifty index started session on a positive note . While initial gains were given up, index recouped gains in later half to close higher . Price action formed a bull candle with lower shadow indicating supportive efforts near 20 day ema (48471 ) and formed higher high -low

• On Monday, index is expected to open with positive gap after exit polls indicated stable government at center . This positive event , coupled with positive price structure is expected to steer Bank Nifty towards 51000 being higher band of rising channel which is in place since

• Meanwhile index has maintained higher high -low on weekly time frame for past two weeks and two week lows of 48000 remains key support going forward . Dips if any would remain buying opportunity

• Structurally, since late Jan’24 low of 44633 , Index is following a peculiar pattern that each 5 correction is followed by 7 % rally resulting into new highs to be made . This has resulted in a well channeled up move in Bank Nifty which is expected to lead index towards 51000 mark.

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