The Nifty 50 is now less than a percent away from the 20,000 mark, which demands the question that is 21,000 the next level on the benchmark index that needs to be watch out for?
From the lows of 19,230, the index has gained nearly 600 points since the start of the September F&O series.
The heartening bit is that banking stocks are finally contributing to the rally, as evident from the Nifty Bank's surge over Thursday and Friday. The index closed above 45,000 for the first time since August 1.
It is possible that the Nifty Bank can lead the next round of the rally as it has shown signs of fresh expansion. Banking heavyweights like HDFC Bank, Kotak, SBI have all gained between 1-3 percent so far in September.
Broader markets are continuing to make new highs and have entered overheated zones. However, they are not completely in "euphoria" territory yet.
The basic strategy is simple - Remain long and keep trailing your stop losses.
Outlook for the Nifty 50:
For the Nifty Bank, Friday's high of 45,383 will be the first resistance for the index, while the bigger, options-based resistance stands at 45,600.
A Sensex call option gathered a lot of interest last week over a trade that went from Rs 4 to well over Rs 200 in a fraction of a second. Read more about that here.
(Edited by : Hormaz Fatakia)
First Published: Sept 11, 2023 7:56 AM IST
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