Nifty might be bullish moving forward

The past two weeks have been really thought-provoking for the bulls since the domestic markets witness too many turbulent. It all started with a scare of new Covid variant and then we saw a shocker from the US fed. This was accompanied with a constant FII selloff in Indian Equity markets.

However, the bulls held their nerves and defended the low of 16,780 during this tough time. In fact we saw a sharp recovery in the index Nifty towards 17,500 mark and a gain of around 2% from previous week’s close.

Since past couple of weeks we have been mentioning about the support formed by rising parabolic trend line formed by joining the lows since April 2020. In line with our view the low of 16,782 proved to be a comeback zone for the bulls and the index is now at 17,500 mark.

Going ahead, the undertone might remain bullish but 17,500 to 18,000 range would be a bumpy zone since that is the cloud area of Ichimoku on daily scale.

Nifty Bank expected to bounce back 38,250

We would advise traders to remain stock specific within this upside range. On the downside, 17,250 would be an important support for the week. A breach of the same might bring in further uncertainty in the markets.

Previous we discussed that Bank Nifty is showing a sign of some possible outperformance against the benchmarks. In line with that view; the index rallied around 2.5% during the week and re conquered 37,000 mark. For the coming week we maintain buy on dips stance till the time support of 35,400 to 35,000 is intact.

On the upside, 38,250 would be a very strong resistance for Nifty Bank index and a close above that would bring the bulls back in complete control.

(The article is written by Mehul Kothari of Anand Rathi Wealth)