On the day of the weekly expiration of index options, the benchmark index witnessed profit booking. Post muted opening, the market registered selling pressure. The Nifty/Sensex opened at 15,238.70/ 51,903.86 and due to constant selling pressure, erased over 100/400 points.
Among sectors, financial services, auto and private banks witnessed selling pressure, while the Nifty PSU Banks gained the most, rallying over 5.50 per cent. We are of the view that the market is likely to continue the narrow range activity and PSU Banks and selective midcap and smallcap stocks will outperform in the near future.
Technical
On the daily charts index, higher bottom series formation and the texture of the market suggests uptrend is likely to continue if Nifty succeeds to trade above 15,050. Above the same, we can expect one more leg of the up move, up to 15,250, 15,330.
Bank Nifty may hit a new high in coming week, initiate Bull Call Spread strategy
The Bank Nifty, which outperformed the Nifty for the second week running, is likely to inch towards 32,800-33,000. Nilesh Jain January 10, 2021 / 09:12 AM IST
The Indian market continued to rise for the 10th consecutive week without any meaningful correction. The bulls have been reigning and showing resilience, as every dip is getting bought into. The Nifty scaled yet another record high of 14,367.3 and formed a bullish candle on the weekly scale.
As long as the index trades above 14,100, we can expect the rally to continue towards 14,600 and 14,800. On the downside, the immediate support is at 14,100 followed by 14,000.
Expect short-covering rally in Bank Nifty next week, initiate Bull Call Spread: Anand Rathi Shares
The maximum profit of 324 points could be gained if BankNifty expires at or above 31,000. Nilesh Jain December 27, 2020 / 10:28 AM IST
The bulls have made a smart comeback in the truncated week, where market recoup all the losses after Monday s sell-off. Due to the recovery from the lower levels, the Nifty index formed a long lower shadow which resembles a Dragon Fly Doji candlestick pattern on the weekly time frame. Generally, this pattern is considered as a bullish reversal if formed at the bottom. Since it is formed at the top, shows indecisiveness amongst participants.