Analyst Somesh View - Weekly Comments on 14th OCT 2021

2021-10-14 17:10:21 By Somesh

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Nifty formed a bullish candle on the daily as well as weekly charts as the closing was higher than opening levels.

Nifty opened higher at 18272 to hit an intraday high of 18350. Nifty ended 176 points, or 0.97 percent, higher at a record close of 18338.

Market extended the rally to the sixth consecutive session in a holiday-shortened week led by IT majors who posted good numbers for the second quarter. Easing inflation data and buying in the banking and metal names also added fuel to the rally.

Benchmark Indices rose for the sixth consecutive session and closed at record high levels today. Strong buying is seen in IT, realty and metal stocks while some profit booking is witnessed in auto stocks. Today most of the IT stocks had a good run after strong numbers posted by Wipro, Infosys and Mindtree. 

Index got a big push from a late surge in banks. It gained 2.5 percent during the week.

Bulls are in no mood to relent, with Nifty closing above the 18300 mark for the first time, continuing its northward journey for the sixth consecutive session.

Overall, comparative lower VIX suggests that the bulls are holding a tight grip in the market. Now VIX needs to cool down below 15-14 zones to continue the smooth ride.

Nifty appears to have decisively emerged from its three week consolidation range of 17947/17326 on sustained buying after a gap-up opening for the last two trading sessions.

Seems to have opened up a fresh leg of upswing with higher targets present around 18500 level.

Last 19 sessions of price behaviour evolved into an ascending channel, which is pointing to resistance around 18450 for the next session.

If the Nifty closes above it, then a higher target of 18670 can be projected. On a dip, Nifty may make an attempt to bridge the day’s bullish gap zone of 18248/18197, which should be seen as an opportunity to create fresh long positions with a stop below 18200 on a closing basis.

Traders to buy the dip with a stop below 18190.

Except auto, all other sectoral indices ended in the green, with infra, IT, realty, PSU Bank, power and metal indices were up a percent each. midcap and smallcap added 0.5 percent each.

 


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