The gush of liquidity continued to chase the equities and helped Indian indices close with gains for the sixth day in a row. The sixth day’s gain was different from that previous five days. For the first time, Nifty showed clear signs of exhaustion and an inclination towards profit-taking as we had indicated in the previous note. That said, the weekly options expiry will influence trade on Thursday.
In Thursday’s session, Nifty is likely to see the 10,095 and 10,115 levels act as key resistance, while supports will come in at 9,965 and 9,855 levels.
All in all, our analysis continues to remain on the same lines as the previous day. We reiterate that up-moves from now on should not be chased unless there is some consolidation in the defined range. Chasing of momentum in the current market is making the risk-reward extremely skewed. The high of the earlier session, i.e. 10,176, can establish itself as a temporary resistance point. Given this setup, the 10,175-10,200 range would potentially present itself as a very strong overhead resistance zone. A cautious outlook is advised for the day.
Nifty Bank (20941) we said ‘technically 20927 as long as 20110 holds’ the Nifty Bank unfolded as expected and achieved our target and has closed in the green… looks like a good place to stall if it has too, otherwise 22418 too is possible…crucial support is at 20542