When we analyze the weekly chart Nifty has given a bullish pole flag pattern breakout and higher high higher low formation is likely to continue ahead.
As far as supports are concerned, 16200 followed by 16000 are likely to be considered as strong support for Nifty 50 index; whereas for Bank Nifty, the similar zone is visible around 35500 – 35200.
From the sectoral indices front, Midcap100, Metals, Realty & Media continue to look good while Auto Index is attempting to reverse from oversold territory.
Prices have again touched its lower band of the channel pattern and witnessed a solid recovery. On a previous couple of occasions, prices have shown the same tendency of reversal from its lower point
Rollover in NIFTY and Bank Nifty stands at 82.75% and 81.20% respectively, which appears to be good if we consider the three-month average; but if when we compare the series or series OI change, there
For traders, our advice would be to remain bullish and use any correction towards 15500-15700 levels to accumulate long positions with SL of 15300 levels.
A short term correction is likely once the immediate support of 15513 is broken. Downside targets in this scenario are at the previous intermediate highs of 15432.
The setup of the market is range bound and as Nifty 50 and BSE Sensex are approaching the support of the lower boundary (15650/15600)/ 52100-52200, we need to be stock-specific.
India’s economic engine seems to have survived the second wave of the covid-19 pandemic. Business balance sheets are strong and rural demand is back, leaving inflation as the primary macro challenge
A decisive close above the upper band of consolidation 15950 backed by firm global cues and multi-sector participation would open the door for the next leg of up move towards our revised target of 163
The chart pattern suggests that if Nifty crosses and sustains above 15950 level it would witness buying which would lead the index towards 16100-16300 levels.
If Nifty is able to break the upper band of the pattern which is placed near 15950 levels then prices may witness a major breakout which will help prices to cross above 16150 levels.
The Nifty and Sensex have lost 1.50 per cent in the last two days. The Bank Nifty and Nifty Metal indices have fallen more than 3.5 per cent in just two trading sessions
The breakout from prolonged consolidation indicates rejuvenation of upward momentum that makes us believe; Nifty would challenge the psychological mark of 16000 in the coming truncated week.