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The index started the session on a positive note and oscillated in a narrow range

The index started the session on a positive note and oscillated in a narrow range. However, fag end buying demand helped index to surpass 18800 mark. The daily price action formed a bull candle carrying higher high-low, indicating continuation of upward momentum 

The formation of higher peak and trough supported by across sector participation signifies acceleration of upward momentum that makes us reiterate our positive stance. We expect Nifty to challenge intermediate resistance of 18900 and eventually head towards 19400 in coming months. In the process, we expect midcaps to relatively outperform as it logged a resolute breakout from contracting triangle after approaching maturity of price/time wise correction. This breakout has been supported by improvement in market breadth as currently ~70% components of Midcap index are trading above 200 DMA which is highest since February 2022, indicating inherent strength. Thus, any dip from here on should be capitalised on as incremental buying opportunity as we do not expect index to breach the key support of 18300 amid global volatility. Our positive stance is further validated by following observations

Nifty Bank: 43231

The Daily price action resulted in a small bull candle with shadows in either direction indicating consolidation with positive bias after sharp up move measuring 14 % in past eight weeks 

We expect the index to maintain positive bias and head gradually towards 44600 levels in the coming weeks being the 161 . 8 % external retracement of the September 2022 breather (41840 -37387 )