The Indian equity markets witnessed a steady and gradual move throughout the week, concluding the week near its highest-ever weekly closure of 24,835. The consecutive week of recovery from the lows was underpinned by broader participation and favourable global sentiments.
Eventually, the Nifty50 index concluded the week with gains of over 1 per cent and settled in the 24,820 zone.
The active involvement of mid and small-cap stocks, as well as heavy-weights and banking sectors, has established a solid foundation and bolstered market sentiment. The dominance of bullish investors was apparent throughout, with their strong advance-decline ratio helping the Nifty index to close the bearish gap on the weekly time frame.
Though replicating the same in the upcoming week and conquering another bearish gap on the daily chart around the 24,850-24,950 subzone would be a challenging task, it would require prudence rather than complacency. And once the levels are conquered, we may witness another lifetime high zone in the benchmark.
On the lower end, there has been an ascend to the support zone, starting from 24,750-24,700, followed by 24,650- 24,600 with anticipation of dips auguring well for the bulls.
Going forward, if there have been no aberrations from the global side, our markets are likely to perform well. Also, any contribution from the Banking space would likely provide much-needed impetus to our markets, propelling the benchmark into uncharted territory. Simultaneously, it is advised to stay vigilant and tweak trading setups as per the aforementioned levels.
(Osho Krishan is a senior analyst of technical & derivatives at Angel One Ltd. Views expressed are his own.)
First Published: Aug 26 2024 | 6:59 AM IST
