3/11/2023 0 Comments Bank nifty moneycontrolIt has registered a breakout above the falling supply line joining highs since January 2021 highlighting strength and continuation of the outperformance. Bank Nifty has relatively outperformed the benchmark index during the market correction and the subsequent pullback as can be seen in the Bank Nifty/Nifty ratio chart. We believe any retracement of the recent up move from here on would make the market healthy and offer incremental buying opportunity. Index after a sharp rally of 18% in the just seven weeks has approached overbought condition in daily and weekly stochastic oscillator (currently placed at 81 and 95, respectively) indicating possibility of temporary breather at higher levels cannot be ruled out. Any temporary breather in the upcoming truncated week should not be construed as negative instead should be used as a buying opportunity. We expect the index to maintain positive bias and head towards February 2022 high of 39400 levels in the coming weeks. The weekly price action formed a bull candle which maintained higher high-low signaling continuation of the up move. The index closed at 37920 levels up by 1.1%. The Bank Nifty during last week traded in a range with positive bias to close higher for the third consecutive week amid lower crude prices, softening yields and favourable global cues. Going ahead, we expect catch up activity should be seen in small cap space. The midcap index has relatively outperformed against benchmark supported by improving market breadth, indicating broad based nature of rally. Structurally, the formation of higher high-low underpinned by broader market participation makes us confident to revise support base at 16900 as it is 50% retracement of most recent rally (16438-17407) coincided with the positive gap seen on J(16930-17018).Īlso Read: Paytm share price jumps 2% despite Q1 net loss widening to Rs 645 crore should you buy, hold or sell? Our preferred large cap picks are HDFC Bank, HDFC, Infosys, Tata Motors, Bharti Airtel, Cipla, Tata Steel, Titan Company, while in midcaps we like Astral Polytechnik, Canara Bank, Havells, Tata Elxsi, Brigade Enterprises, KSB pumps, Sumitomo Chemicals, JK Lakshmi cement, Tata Chemical, Trent. On the sectoral front, IT, BFSI which contribute around 50% weight in index are expected to lead with strong support from Auto, Pharma and Consumption. With FII turning net buyers in Indian equities over past couple of weeks, we expect this outperformance to further enhanceĪlso Read: SBI share price drops 2.8% after April-June quarter results disappoint Should you buy, sell, or hold? We expect historical positive correlation of Indian equities with DM to play out going forwardĭ) Within emerging market space Indian equities have relatively outperformed MSCI EM basket significantly. Since 2008, in three major instances, after average correction of 25% S&P500 has formed a durable bottom and rallied back to highs. The Trading recommendation/calls offered herein is / are subject to change.F&O expiry outlook 11 Aug: Nifty support at 17000, resistance at 17500 RBI MPC eyed, global cues to set toneĪ) The breakdown in Brent crude oil prices below $98 boosts sentiment and should help to tone down inflation worries, which is positive for equitiesī) Market Breadth as measured by percentage of stocks rising above 50-day average has seen remarkable improvement, with current reading of 86% against mid-July reading of 44% indicating broadening participation across sectors and market capsĬ) In developed market space S&P 500 has bounced from key support, after 24% correction from life highs. We shall also not responsible for failure of connectivity of internet / SMS messages for any reasons, whatsoever, either for failure of the server or otherwise. The writers may or may not be trading in the derivative contracts mentioned. The Buy/Sell recommendation/calls given on this site is neither an offer to Sell nor solicitation to Buy any of the derivative contracts mentioned herein. Bank Nifty Option company and its founder, owner, employees or technical personnel are shall not be responsible/liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this recommendation/information/calls. Any action you choose to take based on our recommendation/information/calls is totally on your own responsibility. The view posted on the website is given based on the technical research analysis by putting our best effort, thus Traders/Visitors/Clients are requested to use your common prudence before you act on our recommendation/calls. Disclaimer : Trading in Stock Market involves substantial risk to your risk capital.
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