Nifty finally managed to breach the key psychological level of 16,000 on August 3 after making many attempts in the recent past.
The breakout was seen with heavy volumes as Call writers were seen at 16,000 strike unwinding their positions while Put writers added hefty open interest at 15,900 and 16,000 strikes.
Healthy buying in most sectors pushed domestic equities to record high levels.
Heavyweights like SBI, ICICI Bank, ACC, HDFC, Axis Bank and Bajaj twins witnessed strong buying momentum which took the Indian market to record highs.
On the technical front, Nifty has witnessed a fresh breakout on charts after almost two months of consolidation in the range of 15,500-15,900.
In the coming sessions, we expect the momentum to continue towards 16,350-16,400 levels.
We expect that Bank Nifty will also join the rally and move towards 35,800 levels from here on. However, on the higher side, once again 36,000 will act as a strong hurdle for the banking index.