It was a good week for the bulls, as Sensex and Bank Nifty hit record highs, while Nifty closed at record highs. This week, Nifty will complete its unfinished business by touching a new all-time high. The good news is that the backward, broad market is also trying to catch up.
Fall in dollar index and US bond yields following some dovish comments from US FOMC minutes created positive momentum across the globe, while fall in crude oil prices and short covering in F&O market boosted positive momentum in the market.
This week, our Q3 GDP numbers and monthly auto sales numbers will be the key domestic factors. On the global front, the market will closely watch data from the US and any further movements in the dollar index and US bond yields. In addition, news flow China Will continue to create some instability.
Technically, Nifty may cross its previous high of 18604, where 18611, 18888 and 19000 are the next resistance levels. On the downside, 18440 and 18300 are immediate supports, while 18100-18000 is a key demand zone.
The leader of this rally, Mohd. bank niftySome fatigue was seen on Friday, but the overall structure remains bullish. On the upside, 43,333 is an immediate resistance, while 44,000 is the next target level.
The December series starts on a heavy note as FII long exposure in index futures stands at 72%, while Nifty sees high rollover with a huge premium of around 150 points. The Put/Call ratio stands at 1.18. Excessive bullishness is only a concern for the market and may lead to some profit booking or consolidation; However, the overall outlook is still bullish.
Santosh Meena, Head of Research, Swastika Investmart Ltd.
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