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Stock Market Highlights: Nifty starts above 15,000, What to expect?


Stock Market Highlights: Nifty starts above 15,000, What to expect?
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After the Budget presentation on February 1, the Indian stock market has witnessed a big bull rally. A week later on February 8, the market continues to chart an upward trend. in the past week, there was a rally in the global market as well wherein NASDAQ Composite reached fresh all-time highs. 

On February 8 Nifty reached an all-time high of 15,000. Mumbai Live reached out to Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking to understand what one can expect in the coming week.   

Chavan said, “Since the market had lightened up ahead of the event, market participants had all the reason to grab this opportunity with both hands and hence, we could see a gargantuan move to clock probably biggest gains ever on the budget day. The market was not done yet, in fact, the exuberance level kept on rising as the week progressed to clock one of the biggest weekly gains to register new high tad above the magical figure of 15,000.

 He went on to add that these levels were unthinkable last weekend after having a terrible week of trade). "Honestly, we expected Nifty to move towards 14,000 – 14,200 but not beyond considering the previous week’s price action. But the way it conquered 14,200 with some authority, there was no doubt left after Monday’s session, we are heading towards record highs," enlightens Chavan. 

It is the banking stocks that have been at the forefront of the rally. Chavan to makes note of the same as he shares, "The real charioteer of this spellbinding move was the financial space. Some of the banking giants took off during the week as if there is no tomorrow. Now, markets have hastened towards their near term targets with this fast and furious rally so soon. Hence, it would be interesting to see how it behaves in this week. As far as levels are concerned, 15,050 – 15,200 – 15,400 are the important Fibonacci levels in the upward direction; whereas, on the lower side, 14,700 – 14,500 are to be seen as key supports.

 Although the banking stocks have seen rarest weekly spurt during the week, some profit booking was witnessed on Friday after a marathon rally. This led to a formation of ‘Gravestone Doji’ pattern on the daily chart of BANKNIFTY. The said pattern needs confirmation of price trading below the low of the candle i.e. 35,545 in this case. If this happens then we would probably see some profit booking in this week. Traders should take a note of this and ideally it’s advisable to follow stock centric approach.”

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