Following volatility in Asian rivals following significant economic data from China, the Indian market is anticipated to open on Monday on a cautious tone. Corporate earnings will also influence the mood.
The advances in shares of IT heavyweights helped the Sensex and the Nifty, the two Indian benchmark indices, end the day at new closing highs on Friday. Positive global indications and hopes that the US Federal Reserve could stop raising interest rates after July helped bolster the mood in the home market.
Investors are optimistic that a rate increase of 25 basis points will be sufficient to steady the US economy because of the country’s well-managed inflation. Despite weak Q1 profits, there has been a robust buying of Indian IT companies as a result of this improved potential. Additionally, India’s third straight month of lower wholesale prices and the favourable involvement of FIIs helped to boost the broad-based rise in the domestic market, according to Vinod Nair, Head of Research at Geojit Financial Services.
Technically, the Nifty broke out of the constrained range of 19,300-19,500 levels. The index crossed the important 19,500 resistance level to finish higher.On the daily chart, Nifty developed a long bull candle with a small lower shadow, signifying an attempt at a strong upside breakout of the recent sessions’ narrow range movement at 19,300-19,500 levels.
On the weekly chart, Nifty created a long bull candle that offset the previous week’s negative candle and closed higher. Therefore, a confirmation of an upside breakout with a further upmove on Monday is expected to allow for further market gains, according to HDFC Securities’ Nagaraj Shetti, a technical research analyst.
According to Nifty Analysts, the Nifty index’s breach above the consolidation area of 19,300-19,500 indicates rising market optimism.
The resistance at 19,500, which Call writers worked hard to build, was overtaken on a closing basis. As the writers of the Call unwind their bets, it is anticipated that this breakthrough will trigger a large rise. The upward momentum is strengthened by the momentum indicator RSI’s bullish crossover. The Nifty might perhaps hit levels around 19,700-19,720, but it’s vital to remember that 19,300 serves as immediate support.
Bank Nifty
The Bank Nifty index has been struggling to break above the 45,000 barrier, and as long as it stays below this level, there may not be a clear upward trend for the index.
“On the low end, support is formed at 44,700. Positive momentum is indicated by the momentum indicator RSI’s bullish crossover. The index may stabilise with the bands of 44,500 and 45,000 in the future; any clear breakthrough on either side may produce a directional trend, according to De.