Our markets started the week on a flat note in absence of global as well as domestic triggers. As the week progressed, key indices continue to remain in a slumber phase. During the mid-week RBI monetary policy, it appeared as if the Governor dented the sentiments; but immediately on the next day, the banking space proved its significance as we saw BANKNIFTY clocking new highs towards the fag end of the week. On Friday, IT counters became the spoilsport by dragging Nifty below the 18500 mark. Fortunately, the tail end recovery pulled Nifty from lower levels to defend 18400 convincingly.
Finally, markets took a breather after recent relentless run. The Nifty shed slightly over a percent on a week-on-week basis. With couple of heavyweights imposing pressure on the last day of the week, Nifty was on the verge of a breakdown; but fortunately, bulls managed to defend their territory at the end. Now, taking a glance at the daily time frame chart, the Nifty is now placed slightly above the key support of ’20-day EMA’ which coincides with previous swing high of 18450. Hence, we continue to remain upbeat as long as 18400 – 18300 is not violated on a closing basis. Until then, any intermediate decline should only be construed as a profit booking before resuming the upward trend. On the flipside, 18650 – 18700 are the levels to watch out for. The moment Nifty surpasses this, one should gear up for yet another milestone of 19000 in near future.