Last week – review
Going into trade this week we did mention that positive break out could trigger rally of 2% on indices and all major indices are up by more than 2% and Nifty touched fresh life-time high once critical resistance level were crossed. Rally this week was supported by India’s Q2 GDP numbers which came at 7.6% above estimate, led to rally in infra stocks.
Technical Insight
• Nifty in unchartered territory will further upside to 20525 & above on higher side and key support on nifty for next week could be 19948 & 19736.
• Banknifty upside target for next week could be 45410 & 46310 and support level comes at 43711 on weekly basis. On Friday, 8-Dec-23 RBI MPC policy – we are expecting volatile session.
Approach on Technical: We consider this week’s closing as positive technical breakout received earlier this week and we see positive trend to continue in coming few weeks, consolidation in first few trading day could be healthy before next up move.
Nifty made fresh life-time high and is currently in unchartered territory, Nifty could test 20525 & 20689 & support level comes at 19948 & 19736. Banknifty could attempt to outperform in coming weeks as RBI MPC Meeting on 8-Dec-23 could give decisive direction. Banknifty @ 44207 & 43711 to act as support level while Banknifty could test 45410 & 46310 on upside.
Fundamental Insight
1) India’s Q2 GDP Grows 7.6% Surpassing Estimates As Manufacturing Spikes
2) Core Industries Grow 12.1% In October Driven By Four Key Sectors
3) Bank Lending To Private Corporate Rises 14.9% In September: RBI Data
4) GST Collections Jump 15% To Rs 1.67 Lakh Crore In November
Equichain Wealth Advisors: Market View & Strategy
Market firing on all cylinders, we expect positive momentum to continue in coming weeks as market will test the sentiment of pause of interest rate hike. Recent rally may be a good case of – rally on expectation and profit booking on actual news. We do see further rally run-up to RBI MPC meeting on 8-Dec-23 and US Fed meeting on13-Dec-23 and market could then consolidate or witness profit booking.
To conclude today’s report – Nifty around 20600 – 20800 & Banknifty around 46000 – 46500 would be good level to book profit around 2nd week of December if comes before the event or post event. Any correction / consolidation in first few trading days of next week to be considered as buying opportunity ahead key event later this week and next week.