Thanks to Friday’s rally, which was supported by significant gains in global markets, Nifty ended another week with respectable gains. Lower-than-anticipated US inflation data led to a dramatic fall in US bond yields and the dollar index, triggering a massive jump in global stock markets. Nifty ends 52-week high, and Bank Nifty ends at new all-time high, but the broader market’s performance last week remained weak; In fact, both midcap and smallcap indices recorded a decline.
Amid a rebound in the international markets, Nifty is approaching its all-time high; Its previous all-time high was 18604 on 21 October. Indian equity markets have been receiving continuous funding from FIIs, and Friday marked their 11th straight trading session of buying. As US bond yields and the dollar index fall, they could help propel the market to new all-time highs. Remarkable strength seen for the past week Rupee Too. The perception will remain with the movement of world markets. The market will keep an eye on our domestic inflation data.
Technically, Nifty is coming out of the wedge formation and closed at the crucial resistance at 18350. If it manages to stay above that level, we can expect a move towards the 18500, 18600 and 18800 levels. On the downside, 18300 is a solid support and the 18100-18000 area will act as an immediate demand zone.
Bank Nifty is currently trading above the psychological level of 42000 and at an all time high. The next logical target for Bank Nifty is around 43,000. On the downside, 41750 is acting as an immediate support, and the 41000 to 4800 range is an important demand zone.
If we look at the derivatives data, the put call ratio is sitting at 1.22 and FII long exposure in index futures is at 62%, both of which point to a bullish trend in the market. As per the open interest distribution chart, till 19000 there is no major resistance, while 18300 and 18000 act as important support levels.
Pravesh Gaur is Senior Technical Analyst Swastik Investmart Ltd
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