The Nifty recouped initial losses and ended the session on a flat note

The Nifty recouped initial losses and ended the session on a flat note as supportive efforts emerged from October 2021 high of 18600 (as per change of polarity concept earlier resistance acted as support). As a result, daily price action resembles a hammer like candle, indicating elevated buying demand

Going ahead, we maintain our positive stance and expect the Nifty to gradually head towards 19400 in coming weeks. However, the move towards 19400 would be in a non linear manner as bouts of volatility amid global development cannot be ruled out wherein we expect broader markets to relatively outperform as it is resolving out of three months buying opportunity and a higher base formation. Thus, dips should be capitalised on as incremental buying opportunity. We expect any temporary breather to get anchored around key support of 18300. The aforementioned positive stance is further validated by following observations

Nifty Bank: 43332

The daily price action formed a high wave candle with shadows in either direction signalling continuation of the consolidation after sharp up move measuring 15 % in past nine 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 ) . Dips should be used as a buying opportunity index has strong support placed around 41800 levels