Upside trend to continue on Nifty
Markets end on a mixed note as Nifty and Banknifty diverge on closing basis
Markets end on a mixed note as Nifty and Banknifty diverge on closing basis. Nifty faced a resistance at 18,020 level which is a tad below its short term MA. Broader markets were also mixed with divergence seen in sectors. Metals was the loser shedding more than a per cent and a half.
Banknifty was positive and was stronger to end on closing basis. Nifty should sustain 17,800/750 on downside while upside key resistance is placed in the zone of 18,050/18,150 while to resume its uptrend Nifty must break 18,350 on closing basis.
The Short term MA on higher scale are still positive on rolling basis so this can still be a well defined dip in a long uptrend but at the same time Nifty must hold 17,700 for the continuation of the same.
We believe the breakout in banknifty is much stronger with sustained momentum and its breadth is also comparatively better. 39,315 and 39,500 are key support while on upside we believe the trend should continue on positive basis.
Rotation is the current theme with money flowing into strong sectors such as Realty, PSU Bank, Pvt Banks and select metal stocks.
(The author is Technical Analyst, Finversify)