When global markets were on Christmas vacations, our market has shown profit booking. Then Nifty has shown smart recovery from 17800 and that is the weekly support. What next?
Global: The CPI numbers in the USA came as expected
and the recession is looking under control. There are fewer chances to increase
the repo rate in the future. China has almost unlocked everywhere which is a
plus point for the metal sector. Overall global clues are neutral to positive
and budget 2023 is coming. Our market reacts positively before the budget.
Based on these all parameters and the chart structure of the Nifty 50 we are
bullish. Let's discuss the chart in brief.
NIFTY 50: After a new lifetime high, nifty has corrected
up to 17800 and that is very strong support on a weekly chart. Nifty has
bounced twice from the same support levels. On the daily & hourly chart RSI
showing Positive Divergence that’s why our confidence is high for the upside.
As per Option Chain Data 17900 & 17800 are strong supports and there
is no strong resistance. For the coming week, we are neutral to bullish on the market
and will wait for a breakout to 18250. Once Nifty will cross this level then Double
Bottom will be confirmed and we can expect strong up moves.
BANKNIFTY: PSU banks are bullish and those are holding
to banknifty. It is also showing signs of reversal from support levels.
Currently, 42000 is strong support and 43000 is reacting like resistance. On an
hourly chart it has made Double Bottom and given Breakout. The overall
structure is looking bullish.
Our view is to buy on dips near support levels.
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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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