Last week – review: Nifty range for this week was 17155 to 17490. Banknifty traded in range of 37249 to 38231. Indices remain in range, but did not test the lower or upper end of the range mentioned in weekly report.
Approach on Technical: On Thursday, sharp fall in Indices did not witness follow-through selling. We expect upper end of range that is Nifty @ 17674 & Banknifty @ 38448 could be tested.
We would remain sell-on-rise as the pace of the rally was too fast, any consolidation / correction would be healthy. Indices rallied around 8% – 9% in last 3 – 4 weeks. VIX on Thursday was trading above 20 level after sharp fall in indices but recovered by end of session and VIX closed below 20.
Equichain Wealth Advisors: Opinion & View
This rally has started on back of US Fed managing soft landing, growth will not be impacted hence corporate earnings will have limited impact. It is change in narrative which have led to 8% to 9% rally in Indian market and Wall Street rallied 10% & above. Next US Fed meeting is more than 6 weeks away, market will continue its zig-zag move.
RBI MPC meeting outcome was surprising for us with minor disappointment. RBI don’t expect inflation to witness considerable down-tick. We expect RBI to increase interest rate in upcoming meeting to keep in tandem with global central banks. We will prefer to go long only after correction and indices near lower end of the range.