All you need to know before the market opens on Monday: GIFT Nifty hints at 100 pts gap-up; Experts see Nifty rising to 24,700-25,000 levels. FIIs index long-short ratio at 1:1; 17 stocks in F&O ban.
The US stocks ended higher on Friday as investors played down a recession risk on stronger than expected retail sales data. Dow Jones, the S&P 500 and NASDAQ edged 0.2 per cent higher.
The US 10-year bond yield languished around 3.90 per cent. International Gold futures surged to 2,540 levels; while, WTI Crude Oil futures hovered around $75 per barrel.
In Asia this morning, Nikkei was down 0.3 per cent; Kospi and Taiwan quoted on a flat note.
On Friday, Nifty closed above the recent congestion zone, and a range breakout is visible on the hourly charts. Additionally, Nifty has closed above the 20-Day EMA, which previously acted as resistance. With these technical indicators, it seems there’s more fuel for Nifty on the upside.
In the upcoming sessions, we may see levels of 24,700 and 24,850 being tested, which could serve as immediate hurdles. If global markets remain supportive, we might even retest the 25,000 levels and beyond.
Conversely, the bullish gap left today around 24,200 is critical; the observations above hold as long as it is defended. However, if breached, the market may head back toward the lower levels of 24,000 and 23,900. Traders are advised to monitor these levels and consider a buy-on-dip approach.
The Nifty overcame the 24,500 barrier and is currently maintaining above the 20 DMA. Nifty is also holding above the 50 per cent Fibonacci retracement level as well. The daily RSI has rebounded from the lower levels and now stands at 55. Any pullback towards the 24,450 zone could be a buying opportunity for a short-term move towards the 24,700 level.
The Bank Nifty has formed a bullish candle, overcoming the hurdle at 50,400. However, Bank Nifty remains within the 38.
