Nifty IT showing signs of strength, Bank Nifty headed towards 44K: Analyst

Market


The Indian equity market rallied sharply on the expiry day of the November series. Bank Nifty and Sensex witnessed a fresh all-time high, while Nifty ended with a record closing high. The drop in the dollar index and US bond yields following some dovish comments in US Fed minutes boosted sentiment across global markets. 

The sharp drop in crude oil prices, on the other hand, is serving as a cherry on top for Indian equity markets. Banking stocks were doing well, but today the baton was taken by IT stocks. The rally in the final hour can be attributed to a quick covering move as call writers were trapped. There is a good chance that the Nifty will reach an all-time high tomorrow or within the next few days.

Technically, 18,611 and 18,888 are the next target levels for the Nifty, while 18,400 and 18,250 will act as immediate and strong support levels. There are no signs of weakness, and Nifty is respecting its immediate moving averages beautifully. 

Nifty IT is also showing signs of strength, and it may start to do well once it manages to take out the 30,500 mark decisively.

Bank Nifty is continuing its outperformance, and it is likely to head towards the 44000 mark; however, 43333 is an immediate hurdle. On the downside, 42600 has become an immediate support level.

Santosh Meena is head of research, Swastika Investmart

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