After last week's sharp up move, Nifty consolidated in a narrow range on May 24 to end the day with minor gains.
Last week, Nifty had broken out from the downward sloping channel on the weekly chart. The index had been trading in a consolidation zone for the last 3 months and the range had been 14,150-15,000. This range is now taken out on a closing basis and the market is all set to extend the gains.
Nifty has been forming higher tops and higher bottoms on daily charts. Daily RSI has also been registering higher tops and higher bottoms which confirms the bullish trend.
In the options segment, we have seen Put writing at 14,900-15,000 levels. This support level also coincides with the 20 day EMA which is currently placed at 14,860. Therefore, we believe that the bullish trend will remain intact till the Nifty is trading above 14,900 levels.
Bank Nifty was the leader in the recent up move of the market and we expect the same trend to continue.
Private Banks, PSU Banks and NBFC space should be on the radar for getting higher returns in the coming days.
Bank Nifty is expected to move towards the next targets of 34,918 and 35,985.
Nifty has surpassed the crucial resistance of 15,000. The market could see momentum buying in a short span of time.
Next upside targets of Nifty are seen at 15,432 and 16,000. Longs should be protected with 14,900 stop loss in Nifty and 34,000 in the Bank Nifty.
Nifty Midcap and Smallcap indices have outperformed Nifty in this calendar year so far. We expect their outperformance to continue for the coming weeks also.