Weekly Market Recap
It has been quite volatile and interesting week for the market, as NIFTY started off quite well then wobbled during the week, but finally ended up with solid gains. As I wrote, much depends on financial stocks, it was the week belongs to them as they rebounded feverishly on Friday, consequently indices posted a whopping weekly gain in last two months.
In the week gone by the benchmark SENSEX surged 1807 points, or 3.71% and reclaimed the 50K mark to close at 50540. Similarly, NIFTY soared 497 points, or 3.39% and closed above the 15k mark in two months at 15037. While BANKNIFTY which has been on the back seat for quite some time, finally took the charge and posted a fantabulous gain of over 7%.
Current Outlook
Finally, weathercock delivered the signal which is ostensibly loud and clear about the forthcoming move in the market. As we can see in the chart below that NIFTY has incisively broken out above the falling channel which appears to be quite a bullish setup. Ideally, these technical setups invite the strenuous up move that may continue for quite some time. Though, it seems nice and smooth break out, but the ride was inextricably tangled with three failed attempts until past week. However, the longer it takes the higher it can go.
In last penultimate note, I wrote, we can see the final leg of rally which can take the NIFTY beyond its previous peak that premonition was remained in question last week with some evidence that suggested one more fall towards the lower end of the range on the back of false broke out. Notwithstanding, market resumed its path and solved the much-awaited conundrum in a dramatic fashion.
Most importantly, prolonged laggards and heavy weight financials rebounded sharply late this week and made this breakout possible. That’s the good news. Looks like they are ready to hold the reins and take the charge from here on. In addition, VIX made the lower low and continued to alleviate, that’s a good sign. Moreover, technical indicators in the lower panel have just started to roll up from the middle of the range and market breadth is extremely strong which is tremendously bullish setup as of now.
Ipso facto, outlook seems to be quite bullish unless any technical damage witnessed in forthcoming session.
Conclusion
Technically, the NIFTY is enunciating the extremely bullish setup on daily chart since January, despite there are some serious concerns on long-term monthly charts which is clamouring warrant of caution, however, provided the upside strong momentum stream goes in the favour of bulls. There are many strong stocks which are providing a decent entry with large upside potential.
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Enjoy the ride…; Be a Savvy Investor..!!
Pankaj