Nifty breaks out from consolidation phase, 11,000 on the cards
Nifty shuts shop above the 10,800 resistance zone for the first time since February 1, 2018. The rally was led by the banking stocks followed by FMCG and metals stocks. Nifty broke out from a Symmetrical Triangle pattern on the smaller time frame chart.
The projection of the breakout opens up another 200 points upside for the Nifty, which translates into a potential target of 11,000 levels. Support gets upgraded to 10,700 levels.
Bank Nifty, on the other hand, kept moving higher towards its immediate resistance of 26,900 levels. The Nifty Private Bank index solely aided the outperformance.
The Nifty PSU Bank index continued to struggle, however, marginally contributed to the gains. Support is upgraded to 26,000 levels for the Bank Nifty.
Next week promises to be full of action as the Karnataka elections verdict on Tuesdays May 15, 2018 also not forgetting US President Donald Trump’s speech on drug pricing later are the key events to watch out for. Apart from this, in terms of macro-economic data, the April wholesale price, consumer price and trade data yoy will also be announced next week. Rising crude oil, weakening Indian currency and bond yields will also be closely watched for further direction.
