The Indian equity markets had a strong start to the week, with the Nifty50 index soaring to new highs of the calendar year (18458.90) and levitating the market sentiments. However, the grip got loosened from the bulls at the highs and the market slid to a lower zone throughout the week. Eventually, some sign of relief was seen at the last trading session as Nifty precisely rebounded from the 20-EMA on the daily chart and had a positive closure. Amidst all the hustles, Nifty concluded the week with a cut of nearly 0.60 percent and settled a tad above the 18200 level.
Technically, the recent correction was certainly expected post the decent run and the overall chart structure remains robust, with bulls firmly able to withhold the pivotal support. Even on the hourly chart, the formation of the ‘Wolfe Wave’ pattern with the positive divergence in the RSI-smoothened contributes to the positive development for the index, and we may expect the runup to continue in the coming period. On the technical levels, the 18050-18000 was firmly safeguarded, showcasing the importance of pivotal support and is expected to act as a sheet anchor in the comparable period. On the higher end, 18400-18450 is likely to act as the sturdy wall and a decisive breach would only trigger fresh longs in the system in the future.
Going forward, we remain sanguine with a robust approach post the price-wise correction in the index. Also, the banking index is nearing the lifetime high zone, and any breach could contribute to the upliftment of the market sentiments. Simultaneously, amidst the broader market participation, one needs to keep a stock-centric approach for better trading opportunities and stay abreast of global developments.