Bajaj Broking Research Market Closing Commentary
Benchmark indices closed sharply higher on the weekly expiry session, extending their winning streak for the fourth session in a row amid firm global cues. Nifty was up 283 points or 1.24% at 23,190.65. The broader market started the session on a flat note.
However, it gained as the session progressed as the Nifty midcap and small cap closed the session higher by 0.7% each. All 13 sectoral indices traded in the green, with Nifty IT leading the gains. Auto, Realty, Oil & gas, FMCG, Pharma, Metals, Energy rose by 1% to 1.5%.
Nifty Outlook
Nifty witnessed a strong up move as it extended gains for the 4th session in a row and closed around the 23,200 levels. The index on the daily chart has formed a strong bull candle with a bullish gap below its base (22,940-22,973) signaling continuation of the positive momentum. Index on expected lines extended up move and tested the immediate resistance area 23,000-23,200 on Thursday session. Going ahead, a follow through move above 23,200-23,250 will signal continuation of the up move towards 23,500 levels. Failure to do so will lead to some consolidation in the range of 22,800-23,200 as the daily stochastic has approached overbought territory after recent sharp up move of 1200 points in the last 12 sessions.
Bank nifty Outlook
Bank Nifty gained for the sixth session in a row as it formed a fourth consecutive bull candle with a higher high and higher low highlighting strength and extension of the up move. Going ahead, we expect the index to maintain positive bias and head towards 50,600 levels in the coming sessions being the upper band of the last 10 weeks consolidation range. While immediate support placed at 49,200-49,000 levels being the confluence of key retracement of current up move and 50 days EMA.
The index in the last 10 weeks has been consolidating in the broad range of 47,700-50,600. Buying demand has recently emerged from the lower band of the range. We believe a breakout above the upper band will signal a major reversal of corrective trend and can open upside towards 51,500-52,000 levels in the coming weeks.
