THE NIFTY OPENED ABOVE THE PSYCHOLOGICAL MARK OF 18000 WITH A POSITIVE GAP (17936-18044)

The Nifty opened above the psychological mark of 18000 with a positive gap (17936-18044) and continued to march upward as intraday dips were short lived. As a result, daily price action formed a bull candle carrying higher high-low, indicating acceleration of upward momentum.

In today’s session, The index is likely to witness gap down opening tracking weak global cues. Key point to highlight is that past three weeks over 900 points rally hauled daily stochastic in overbought conditions (currently placed at 90). Thus, temporary breather from here on tracking volatile global cues should not be construed as negative, instead dips should be used as incremental buying opportunity to ride next leg of up move towards 18300 in coming weeks and eventually retest lifetime highs of 18600 in a couple of months. In the process, immediate support is placed at 17500.

Nifty Bank: 40873

The daily price action formed a bull candle with a higher high -low and a small bullish gap below its base (40574 - 40694 ) signaling continuation of the up move.

In the coming session the index is likely to open gap down amid weak global cues . However we expect buying demand to emerged around the support area of 39500 -39000 in the coming couple of sessions and the index to head towards the all -time high of 41800 levels in the coming weeks being the measuring implication of the last three weeks range breakout (39800-37944). Thus, the current breather on account of the global volatility should not be seen as negative instead should be used as incremental buying opportunity.

Disclaimer