Last week – review: Nifty tested lower end of the range at 18421 but Banknifty outperformed. RBI MPC policy & election result were inline with market expectation with no surprises.
Approach on Technical: Nifty indicates weakness on chart while Banknifty is showing strength and RSI of Banknifty is above 70 which could potentially trigger short covering.
Nifty & Banknifty technical indicator are showing opposite trend, we would wait for either Nifty to show positive momentum and move above 18600 level with 18421 to act as review for long position or Banknifty to turn negative and move below 43317 & 42996 which could test 42157 on lower end of the range.
Market View & Strategy
This week our approach is very clear, any addition in fresh long with a positional view would be after the US Fed meeting outcome and initial reaction to market is done by 15-Dec-22.
This week we are changing our bullish view to cautious and will take fresh view after US Fed meeting outcome. Banknifty made fresh high and valuation are near to peak.