Last week – review
Last week market movement were more related to volatility seen during this week but indices continue to trade in narrow range. Nifty 50 & SENSEX closed at fresh all-time high was market sentiment remain cautious.
Technical Insight
• Nifty this week range seen at 21956 & 22446 with positive trend. Nifty around 21938 level likely to act as important support level on trend line from October 2023.
• Banknifty this week range seen at 46073 to 47748. Banknifty @ 46073 to act as important support level and fresh up move can be seen above 47052.
Approach on Technical: Going into trade this week, Nifty remain strong as compared to Banknifty. This week’s trade will be dominated by final F&O expiry for February 2024 series.
Technical setup remains bullish till Nifty @ 21957 & Banknifty @ 46073 holds. We expect indices to test higher target on Nifty @ 22448 & Banknifty @ 47748 & higher.
Fundamental Insight
1) Policy Pivot Unlikely Until Inflation Is Under Control, Show MPC Minutes
2) Citi Research: Nifty Expected to See 14% Earnings Growth for Couple of Years
3) RBI Allows Banks, Non-Banks to Issue Public Transport Payment Instruments
Equichain Wealth Advisors: Market View & Strategy
Even though market is trading near its fresh life time, market sentiment remains cautious. High volatility was seen this week cues from domestic & global market remains stable and positive while valuation seems to be stretched.
We continue to maintain our stance to keep allocation level around 65% to 70% while remain bullish with medium to long term view. We remain cautious with short term view and keeping our strategy to make fresh allocation only on decline. Technical setup looks bullish going into F&O expiry this week for February 2024 series. However, we continue to play cautious and expecting high volatility in final F&O expiry week.