The Nifty continued it’s upwards rally for the third straight week which has been almost a
vertical rise, possibility of some consolidation can not be ruled out before the next major
directional move. Nifty hovered between a range of 24,000 to 24,600 while it will be crucial to
hold the 23,800 level downside to maintain its bullish tone; a breach could lead to extended
profit-taking, with the next major support near 23,400—where key moving averages such as 20-
day, 100-day, and 200-day EMAs still supporting upside. On the flip side, a decisive breakout
above 24,400 on the closing basis could re-ignite bullish momentum, potentially propelling the
index toward the 24,800 mark.
Bank Nifty continues to show consolidation after a vertical rise while supporting relative
strength, above key moving averages even after profit booking of the initial rise. While some
consolidation may be seen in the banking index, the broader tone remains optimistic. After a
sideways move, in case we see further correction near 52,800-53,700 levels, buying interest is
expected to emerge with an upside potential toward 55,500–57,000.
Looking at the present scenario, it is advisable to maintain a positive approach with “buy on
dips” strategy and a preference for hedged positions in the index. Meanwhile, selective stock-
picking opportunities continue to emerge with sector specific preferences. Hence, the focus
should be on identifying stocks with favorable risk-reward setups.
