Published on 21/05/2019 9:10:32 AM | Source: Angel Broking Pvt Ltd

Bank Nifty to rally towards 31200 followed by 32000 - Angel Broking

Posted in Market Outlook| #Market Outlook #Angel Broking Pvt Ltd

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Sensex (39353) / Nifty (11828)

It is quite rare to see that no one is bothered what’s happening in global markets and whether US President has sent any tweet or not. Yesterday, it was all about our mega event and the result of exit polls over the weekend. With almost all polls indicating NDA government back in power with thumping majority, the market overjoyed with this and had a massive bump up at the opening well above the 11600 mark,. In the initial hour, there was mild profit taking seen; but eventually this got bought into and index went on register colossal rally of over three and half a percent to the previous close.

Finally, traders’ / investors’ had something to cheer for and although the final verdict is yet to come (slated on May 23), markets took a huge leap after better than expected exit polls results. Now, all eyes on the actual event on Thursday; but, before this, the Nifty has managed to clock highest ever close on daily chart. With almost all other pockets contributing heavily, we expect this rally to extend further at least towards 11950 or even the magical figure of 12000 is on cards. On the lower side now, 11700 followed by 11591 would now be seen as sheet anchors.

Yesterday, no brainer, banking index hastened at record highs and there was massive buying interest seen throughout the day across the broader market. Since last few days, we have been advising accumulating marquee names in this recent decline and we were hopeful of a positive reaction. This strategy seems to have worked well as we saw stellar moves in so many pockets, especially the ‘midcap’ index, which had given some early signs of completing its time wise as well as price wise correction phase.


Nifty Bank Outlook - (30760)

The Bank Nifty index too opened with a gap above the 30000 mark and continued the buying momentum to register new highs and ended the session with whopping gains of over 1300 points. Along with the private sector banks, the PSU Banks too participated in the rally which led to an up move in the Nifty PSU Bank index of almost 8 percent. Yesterday's gap up opening in the Bank Nifty and the Nifty PSU Bank index should provide a support base going ahead and we expect a continuation of this trended move in short to medium term. As per the reciprocal retracement theory, we expect the Bank Nifty to rally towards 31200 followed by 32000 in the next few weeks. On the flip side, support can be seen around 30280 and 30120 levels.

In-line with our expectations, the positive outcome resulted into a complete gush in so many midcap counters, who had underperformed significantly over the past few months. Going ahead, traders should focus completely on such propositions from the broader market and should keep a close eye on the final outcome on Thursday.

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