The Indian equity benchmark indices are expected to follow through Friday's strength in the week ahead.
"Index formed a bullish candlestick pattern with a higher high and a higher low for the second week in a row highlighting continuation of the pullback as index in the process retraced more than 50% of its prior decline 26,373 to 22,183," said Bajaj Broking Research.
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Accordingly, the key resistance levels have gone up to 24,700-24,800 range, while on the flipside short-term support is located at 23,550, the brokerage points out.
"We are of the view that the short-term market texture is bullish, but a buy on dips and sell on rallies strategy would be suitable for traders," said Amol Athawale, VP Technical Research, Kotak Securities.
Nifty Bank
The bank Nifty index is also expected to remain bullish in the coming week, as per analysts.
"The index on the weekly chart formed a bullish candlestick pattern characterised by a higher high and a higher low, indicating a continuation of the pullback," Bajaj Broking highlighted.
Going ahead, a follow through strength above last week high of 56834 will open further upside towards 58,000 levels, the analysts add.
On the down-side, short-term support is placed in the range of 54,500-54,000 zone.
Market Recap
India's benchmark equity indices logged a second straight week of gains amid a global recovery from last month's Iran war selloff. The Nifty 50 ended 156.8 points or 0.65% higher at 24,353.55 and the BSE Sensex added 504.86 points to close at 78,493.54.
Hindustan Unilever and Nestle India were the top percentage gainers on the Nifty. Wipro shed the most after a disappointing guidance for the year.
Broader markets outperformed the benchmark. The Nifty Smallcap 250 gained 1.5% and the Nifty Midcap 150 jumped 1.2%.
The Nifty FMCG and Nifty Energy were the top sectoral gainers on the NSE.
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