Will Nifty Bank hit 40,000-mark next week?
Nifty Bank not only outperformed the benchmarks, but also managed to clear the hurdle of 39,000.
Finally, the consolidation of almost 10 trading sessions was broken on Dalal Street for the week ended October 15. The Nifty index not only surpassed the high of 17,947 but also penetrated deep above 18,000 mark. The index registered a new life high of 18,350 and ended the week with gains of around 2.5% from its previous week’s close.
In our previous article, we mentioned a couple of trend lines that could have acted as resistance for the Nifty.
The first trend line which was formed by joining the lows of 15,513 and 17,326 and was placed at 18,000 was taken out with ease. The second rising trend line formed by joining the highs of 17,793 and 17,948 has now extended towards 18,400. Thus going ahead, 18400 would be a fresh trigger point for further upside. A move above the same might reinforce the bulls to bring the index towards the 18600-18800 zone. On the contrary, the support has now been shifted to 18,000 from 17,500. Only a breach of the same might confirm a short term top in the markets. Till that time bulls are likely to rule the market.
At last, the big boy Nifty Bank index displayed its dominance during the week went by. The index not only outperformed the benchmarks but also managed to clear the hurdle of 39,000. The index gained over 4% from its previous week’s close. For the coming week, 40,000 would be a psychological resistance for the index. A move above the same might extend the rally in banking names. The support has now been shifted to 38,000. In the previous week, we also discussed the Nifty PSU Bank index and in line with our view the index rallied by more than 6%.
Stock recommendations:
Jamna Auto | Buy | Stop loss: Rs 96 | Target price: Rs 111
The stock is on the verge of a multi-year breakout which will get confirmed above Rs 101. Traders can buy the stock above Rs 101 for faster momentum on the upside. We expect a rally of around 10% from thereon.
Redington | Buy | Stop loss: Rs 145 | Target price: Rs 168
The stock has confirmed a consolidation breakout on a daily scale. The stock might be poised to move towards Rs 170 mark in the coming week since the breakout was supported with incremental volumes.