The Indian stock market saw a significant turn of events as the Nifty broke its 4-day losing streak, ending the session with solid gains. This shift in momentum has left many wondering what's next for the market.
The Nifty closed the week at 25,966, slipping 80 points or 0.3%, as a weakening rupee dampened market sentiment. However, the broader market fared relatively better, ending largely flat. On the sectoral front, IT, FMCG, and PSU banks stayed in focus, while financials paused after recent gains.
Technically, the weekly price action formed an inside bar, signaling a deceleration in downward momentum. Friday's sharp rebound has brought the index closer to the upper band of the downward slanting channel. A resolute breakout from the falling channel would confirm the resumption of the uptrend, paving the way to challenge the All-Time High around 26300.
Structurally, the index has been undergoing a slower pace of retracement. With the past three weeks' correction, it has retraced merely 61.8% of the preceding three weeks' rally. Amid this corrective phase, the index has respected the 50-day EMA, which has been held over the past two months, underscoring the market's inherent strength.
The Bank Nifty has been trading around its 20-day EMA despite ongoing global volatility. Meanwhile, a pullback in IT and Oil & Gas signifies a revival in upward momentum. Together, these three sectors account for over 55% of Nifty's weightage.
Dharmesh Shah recommends buying Larsen & Toubro and LTIMindtree. The recommended buy prices and target prices are as follows:
Remember, this is perspective, not prediction. Do your own research before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
Download the TradeKaizen app to practice F&O trading with real-time market data anytime, anywhere.
Get it on Google PlayConnect with fellow traders, share strategies, and improve your trading skills in our Telegram group.
Join Telegram