Markets are in a completely bull grip as seen in the previous two weeks. Every correction is bought into. The momentum is slow, but it is still up. We still have much room on the higher side especially in the Nifty.
We see one or the other sector is pushing the index higher. The week ending Nifty was pushed higher by IT, PHARMA, and METALS. We see a lot of new sectors participating like PSU and Power.
Going by the pattern of pullers and draggers, many heavyweights showing strength in the market. Except for banking, financial services are in line with the trend.
Nifty weekly is still in an uptrend and breaking all previous highs. The higher high and higher lows are still forming and hence we can still see upward momentum. We see 19600 on the high if possibly holding 15470 on weekly basis.
On a daily, we see it can still extend towards 16119 and for that, the immediate support is at 15560. The only concern is that it has formed an indecisiveness on the previous day’s close.
On the other side, Banknifty is a little laggard both weekly and daily.
On a daily BankNifty 34800 holds important support. On the upside 35350 becomes immediate resistance. Unless there is momentum in banking stocks like other sectors, we still have no conclusive evidence to project the momentum. This may take a couple of more days of action.
Sectors watch for the next week.
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We wish you a good trading week ahead.