According to The Economic Times, markets cracked a major bearish structure on Friday, fueled by a massive banking rally, but the momentum's sustainability remains questionable. The Nifty Bank Index is displaying a strong bullish setup, with the index trading near 56,800 and showing fair probability of testing the 57,500 level in the coming session. However, several hurdles appear in the way of continued upside, with 23,700 and 24,000 serving as stiff resistance barriers that have troubled the market for several days.
As reported by The Economic Times, the Nifty IT index is nearing a strong horizontal support band in the 27,500-28,000 range, reinforced by an upward sloping trendline from earlier swing lows. The recent 4% decline points to possible short-term fatigue in selling pressure, while momentum indicators such as an RSI close to 34 and a sharply negative MACD reflect stretched conditions. The average RSI across major IT constituents has slipped to around 30, with several stocks displaying Doji and indecisive candlestick patterns, signaling potential exhaustion in the downtrend.
According to The Economic Times, the Nifty Bank Index is displaying a strong bullish setup across multiple timeframes, supported by both price action and momentum indicators. On the weekly chart, the formation of a Bullish Marubozu signals strong buying conviction, further reinforced by a MACD bullish signal crossover. Heavyweight constituents such as HDFC Bank, ICICI Bank, SBI, and Axis Bank have all registered strong weekly reversal candles, with most forming bullish Marubozus. Derivative data supports this bullish undertone, with nearly 65% of out-of-the-money put strikes witnessing fresh short build-up.
As reported by The Economic Times, Aegis Logistics emerged as the top gainer amid hopes of easing tensions in the Strait of Hormuz, though the stock now faces significant resistance that has resisted upsides since July 2024. HFCL shares fell 15% in the week amid profit booking, but the correction appears to have run its course with a hammer formation on Thursday and a close back above the 20-day SMA. Vedanta shares will be in focus as 4 demerged entities debut on exchanges, with upside objectives set at ₹316-326.
According to The Economic Times, DredgeCorp is showing early signs of technical reversal after correcting into a key support zone, with a target of ₹1,155 and stop loss at ₹1,019. Triveni Turbine is displaying short-term bullish reversal signs with a target range of ₹690-720 and stop loss at ₹649. The analysis suggests that while the banking rally provides momentum, derivative positioning continues to reflect a bearish bias with nearly 60% of stock futures witnessing fresh short build-up, indicating that any upside moves may initially be relief rallies rather than confirmed trend reversals.
