Indian market continues to move towards new highs

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Last week started with expected positivity but next 3 days i.e. Tue Wed and Thursday were full of uncertainty i.e. gap up gap down as well as sideways movement that is why in last week’s article follow wait and wait strategy Was mentioned. The main reason for this was the monthly expiry and talks are on to increase the debt ceiling limit to avoid default in the US, and continuous buying of local and foreign funds on Friday led to a one-sided bullish environment on speculation that the ceiling limit would be increased. , Among these, funds from the metal, IT, auto and FMCG sectors were the main attractions. All these sectors saw a jump of 2 to 5 percent and this trend is expected to continue in the new week as well.

NIFTY 50 (CLOSE PRICE 18499): After last week’s volatility of 330 points, Nifty closed with a significant jump of 295 points. As we discussed in last week’s article about the possibility of reversal, Nifty reversed and closed above all its important resistances which is very high. There is a possibility. Well said. Now in the new week 18632-18696 will be the important resistance on the upside above which level till 18750 will be seen and note that profit booking is being seen around this resistance and 18262-18202 will be the important support.

Nifty Bank (Close Price 44018): Nifty Bank once again closed marginally higher by just 48 points after last week’s volatility of 705 points, again registering its highest weekly close. But the banking sector is still under some pressure. The main reason is lack of sustained upward movement after last 7 weeks and pressure has also increased due to double top pattern after touching higher levels. However, if a significant break above 44200 gathers momentum again, then 44200 will be an important resistance and 43400-43000 will be an important support in the new week.

Nifty Auto (Closing Price 14130): Auto sector finally managed to break its major hurdle and close above it, Auto sector has breakout on weekly and monthly charts which can be called long race horse, every short in this sector Pay attention to the buying opportunity. Its leaders should also pay attention to auto accessories because if the sales of cars and two wheelers increase in auto sectors, then accessories are its mainstay, then in the coming days it will also see good attraction, so attention should also be paid to its leaders. .