Indian markets extended gains for the second day in a row following a brief period of correction to trade at a fresh all-time high level. Nifty50 index managed to shut shop at the high point of the day, forming back to back two bullish candlesticks. A sustained trade beyond 14,650 in the coming trading session will extend the gains, taking the index to 14,780-14,850 levels.
Technical indicator RSI, too, has turned northwards from the upper band of the bear territory, i.e., 60-level, confirming the short-term bullishness dominant in our markets. On the downside, immediate support is placed at 14,470-14,210. Market breadth is also favoring the bulls at the moment, suggesting further upside in the coming sessions.
Bank Nifty is on the verge of a breakout from its previous all-time high of 32,600 formed in December 2019. A sustained trade and close above this major resistance high of 32,600 will trigger another leg of up move, taking the index higher to levels of 33,500-34,000. On the downside, 31,700-31,500 are immediate support zones. Next leg of the up move may be led by the PSU banks, which have started outperforming the private banks.
- CMP: Rs 561
- Target: Rs 610
- Stop loss: Rs 532
- The stock has resumed the uptrend after retesting the trendline support at Rs 530 levels. A sustained trade above Rs 580 will extend the gains to levels of R 610. RSI, too, has turned northwards after taking support at the Rs 60-level being the upper end of the bear territory, forming the strong bullishness dominant in the stock.
- CMP: Rs 139
- Target: Rs 170
- Stop loss: Rs 118
- Joining previous highs, the stock has broken out from a major trendline resistance formed. Moreover, the breakout was backed by extremely healthy volumes, confirming the strength in the breakout and bullishness in the stock. Technical indicators are also favouring an up move in the coming sessions.
Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his own.)