A break above 13,777 may take Nifty to 13,924

0
0


MUMBAI: The Nifty could move towards a new high of 13,924 if it breaks and maintains above the record high of 13,777.50, after coming within a kissing distance of the intraday Thursday, derived data show. Some analysts do not rule out a dip until the market tries a new high.

Nifty’s reach next week based on 13,700 calls and sales value is 13,476-13,924. The index closed up 1.1 percent at 13,749.25 at the end of the holiday shortened week.

The record high of 13,777.5 was set on December 21, before Nifty plunged to 13,131.45 during the same session for fear of a more deadly Covid variant haunting global markets.

Since then, Nifty has recovered and reached a high intraday of 13,771.75 on Thursday. The strong close at the end of the week suggests more strength, feel analysts like Abhishek Karande, CMT senior analyst, Reliance Securities.

“There may be a dip before the market moves higher,” Karande feels.

“A strong closure today means the market is consolidating at 13,131-13,777.5 before the band’s upper end is tested,” said Sunil Pachisia, director, institutional sales, Pratibhuti Vinihit. “It is important for a definite break over the record for the market to test newer heights.”

Huge intraday sales witnessed 13,700 and 13,600 strikes that expired on December 31, underscoring the bullish sentiment as sellers expect the market to remain above the put level sold minus the premium received from put buyers.

As of December 31, Nifty options expiration sales call rate was 1.49, meaning more sales than call sales, a bullish indicator.

The rally since March 24 has been driven by the highest ever FII flows of 2.13 lakh crore in the financial year to 23 December.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here