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NRI

THE NIFTY OPENED THE WEEK ON A POSITIVE NOTE AND SUBSEQUENTLY OSCILLATED IN A 70-POINTS NARROW RANGE

The Nifty opened the week on a positive note and subsequently oscillated in a 70-points narrow range. The daily price action formed a small bear candle carrying a higher high-low, indicating breather after recent sharp up move. In the process, stock specific action prevailed as we approach the fag end of earning season 

We reiterate our positive stance and expect the Nifty to challenge the all-time high of 18600 in the coming week, consequently paving the way towards 18900 by December 2022. The formation of higher peak and trough on the larger degree chart supported by multi sector participation signifies inherent strength. 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: 42076

The daily price action formed a small bear candle which remained contained inside previous session high -low range signalling consolidation at all -time high after the recent strong up move

The index during last week has generated a breakout above the last eight weeks range (41840 -37387 ) signaling extension of the up move . 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

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