Nifty is now seen in a strong position above 25,350. A great rally is being seen in many heavyweight stocks of the index. The most important trigger for the market this week will be the decision of the US Federal Reserve, the impact of which will be seen on the Indian markets on Thursday (September 19).
Even though the benchmark index remained sluggish on Friday, the broader market remained bullish. The Nifty Midcap index managed to cross 60,000. This bullish performance was especially seen in metal stocks. However, whether the bullishness in these stocks will continue this week or not will be clear only in the coming days.
According to Kunal Kamble, Senior Technical Research Analyst, Bonanza
Nifty
The index is trading close to its all-time high, driven mainly by short covering, thereby sustaining the upside momentum. Prices are consistently trading above the 20 EMA, which indicates that the trend is continuing. Options data shows some profit booking around 25,200 levels, with support at 25,100 and then 24,800. The upside momentum remains intact, with 25,500 and 25,800 being potential targets.
As long as the market is above 25,100 level, a “buy on dips” strategy is recommended.
Bank Nifty
The banking index is trading near the psychological resistance of 52,000. The index has formed a higher high and higher low pattern, which indicates an uptrend. Additionally, it has managed to close above the Ichimoku cloud for the first time in a long time, where prices have closed above both the base line and the conversion line, which further confirms the uptrend. Options data also shows a positive outlook for the index. Bank Nifty can move towards 52,350 and then 52,500 levels if it moves above 52,000 levels.