The bulls continued to dominate the market as Nifty reached a new all-time high. This surge in the Nifty followed a breakout from a period of consolidation, indicating strong Bullish reversal. The overall trend appears positive in the near term as the index has consistently remained above its moving average. Furthermore, the momentum indicator, RSI has shown a bullish crossover on the daily timeframe, suggesting strong momentum. Looking ahead, there is potential for the index to move towards 19,450 in the short term, indicating further upward movement. However, on the downside, there is support at 19,000.
Overall, the market is currently exhibiting bullish characteristics, with the Nifty reaching new highs as long as it sustains above 19,000.
The Bank Nifty experienced a breakthrough as it opened above its robust resistance level of 44,500. The index has been posting gains for three days in a row. The Relative Strength Index (RSI) indicates strong momentum and a bullish sentiment in the index.
On the Weekly Chart, the index has given a downward consolidation breakout, suggesting a rise in optimism. Therefore, the trend looks positive for the short term. Immediate support is visible at 44,500 where Put writers have added significantly in the open interest; while the 45,000 strike price has the highest open interest in calls, which suggests that Bank Nifty may encounter some resistance at that level.
IndusInd Bank
Recommendation: Buy | Target: ₹1,700 | Stop Loss: ₹1,248
The INDUSINDBANK has given a swing-high breakout on the weekly chart, suggesting a rise in optimism. Besides, the stock price has sustained above the critical moving average. The RSI is in a bullish crossover and rising on the weekly chart. On the higher end, it may move towards 1700. On the lower end, support is visible at 1248.
Recommendation: Buy | Target: ₹850 | Stop Loss: ₹734
The stock has formed a bullish Harami pattern on the weekly timeframe, suggesting a possibility of a price recovery over the short term. Besides, the stock has found initial support around the previous swing low on the weekly chart. The RSI is in a bullish crossover and rising. On the higher end, it may move towards 850. On the lower end, support is visible at 734.
The author, Rupak De is Senior Technical analyst at LKP Securities
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
Updated: 02 Jul 2023, 07:08 AM IST
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