By closing at all-time high levels, Nifty has resumed its primary uptrend. In the last two sessions, Nifty has rallied almost 8 per cent. Nifty Bank and Nifty Financial Services indices have outperformed by surging more than 11 per cent. While after the sharp rally there is a possibility of consolidation in the Index, at the same time, stock specific moves could continue on the upside. Support has shifted up to 14,400 odd levels in Nifty. Medium term target for the Nifty is seen somewhere at 15,470 levels, which happens to be 161.8 per cent Fibonacci retracement of the entire down move seen from Jan 2020 top to March 2020 bottom.
Trade Setup: Nifty’s behavior against 14,650 crucial; undercurrent strong
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The coming session will see the levels of 14,700 and 14,755 acting as resistance points, while support will come in at 14,580 and 14,500 levels.
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The most important thing to look for in Thursday’s session would be Nifty’s behavior against 12,650 level.
Much on the anticipated lines, the domestic equity market continued with its strong pullback and reached the higher end of the current consolidation channel while ending the day in green.
Headline index Nifty had a better-than-expected start to the day; it got stronger as the day progressed. As the index extended yesterday’s move, it stayed within a rising trajectory while marking incremental high points. Volatility remained absent even as Nifty marched ahead making new lifetime highs. The index ended with a gain of 123.55 points or 0.85 per cent.
Read more about Limited upside in markets; Nifty to be at 15,000 by Dec: BofA Securities on Business Standard. Markets have rallied by 80 per cent since April after a heavy 40 per cent correction following the announcement of the Covid-19-related restrictions
Tuesday s session is likely to see the levels of 14,350 and 14,425 act as immediate resistance points, while support will come in at 14,205 and 14,150 levels.