THE INDEX EXTENDED ITS CHOPPY TRADING SESSION OVER A FOURTH CONSECUTIVE SESSION
The index extended its choppy trading session over a fourth consecutive session wherein it oscillated in 100 points range. The daily price action formed a Doji candle carrying higher high, indicating continuance of a positive bias amid elevated volatility
We reiterate our positive stance and expect the Nifty to challenge the all-time high of 18600 in the coming sessions and gradually head towards 18900 by December 2022. In the process, bouts of volatility owing to global development would offer fresh entry opportunity. Thus, a temporary breather from here on should be capitalised on as incremental buying opportunity as we do not expect the index to breach the key support of 17800. Our positive stance on the market is based on following observations
Nifty Bank: 42535
The daily price action formed a small bull candle with a higher high -low and a fresh all time high (42611 ) signalling continuation of the positive momentum
The index is seen extending its up move after recently generating a breakout above the last eight weeks range (41840 -37387 ) signaling strength . Going forward, we expect the index to gradually head towards 43500 levels in the coming weeks being the 138 . 2 % external retracement of the recent breather (41840 -37386 ) . Hence, any dips should be used as an incremental buying opportunity in quality banking stocks