Our market started the week on a bleak note taking cues from the weak global bourses, wherein the benchmark index tested the Budget day’s swing low and dented market sentiments. Nifty struggled near the 200 SMA throughout the week until the last session, when a robust recovery was seen in the broader market space. Eventually, the week closed on a positive note, procuring 0.74 percent from its previous week’s closure and Nifty settled a tad below the 17600 level. The upsurge in the Adani group companies post the block deal has its rub of effect on the PSU Banks, eventually spreading the cheer in the broader market. From a technical perspective, the recent price action could be seen as constructive development for our markets as the index witnessed a modest recovery from the 200 SMA and made a strong closure on the daily time frame. As far as levels are concerned, 17500 is now likely to be seen as the immediate support zone, while the sacrosanct support lies around the 17350-17400 zone, coinciding with the 200 SMA. On the flip side, the bearish gap of 17770-17800 is expected to act as the sturdy hurdle for Nifty in a comparable period.
Going forward, we remain sanguine and would advise the traders to utilize the dips to add long position in the index. The participation from the high-beta Banking space has provided the much needed impetus and is likely to continue in the near term. Simultaneously, one should also keep a close tab on the Mid-cap space, which is expected to provide immense trading opportunities in the near period.