Market
The Nifty continued its northward journey for yet another session after the RBI in a surprise move left interest rates unchanged on April 6 and also raised the FY24 growth forecast to 6.5 percent from 6.4 percent.
After opening lower at 17,534, the index strongly defended the 17,500 mark. It rose to the day’s high of 17,639 amid volatility and closed 42 points higher at 17,599, its best closing since March 8, continuing the uptrend for the fifth straight session.
Going ahead, 17,500 is expected to act as the initial support for the Nifty followed by 17,400-17,200. If the index manages to hold 17,500, it can rise to 17,700-17,800, experts said.
The index made higher highs, higher lows for a fifth session, with the momentum indicator relative strength index (RSI) reaching 60, which is a positive sign.
On the weekly scale, too, the RSI is in a positive crossover, with the index forming a bullish candlestick for yet another week. The market will be closed on April 7 on account of Good Friday.
"The Nifty has given a falling channel breakout on the daily timeframe, pointing towards a bullish trend reversal. Besides, the index has closed above the critical moving average for the second consecutive day. A positive crossover in the momentum indicator RSI will boost sentiment," Rupak De, Senior Technical Analyst at LKP Securities said.
The market will remain buy-on-dips as long as the index stays above 17,500, he said. On the higher end, immediate resistance is at 17,700, above which the index can move higher, he said.
On the weekly options front, the maximum Call open interest was at 17,600 strike followed by 17,700 and 17,800 strike. Call writing was at 17,600 strike, whereas the maximum Put open interest was at 17,600 strike followed by 17,500 and 17,400 strike, with writing at 17,600 strike.
The data indicates that 17,600 is expected to be the crucial level for the Nifty on either side.
Banking index
The Bank Nifty underperformed the benchmark, rising 42 points to 41,041. It formed a small-bodied bullish candle on the daily scale. For the week, too, it formed a bullish candlestick as the index gained a percent.
"If there are no surprises over the weekend on the world markets front, we can expect the Bank Nifty to do well next week as compared to the Nifty and can expect a sharp move in it as well once it crosses the 42,000 hurdle," Rahul Ghose, Founder & CEO at Hedged, said.
Volatility cooled down further. India VIX, which indicates expected volatility over the next 30 days, fell by 4.95 percent to 11.80 from 12.41 levels. For the week, it was down 8.8 percent, continuing the downtrend for the second consecutive week.
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