The Nifty had a gap-up opening at 18,074 and after initial volatility, extended the uptrend as the day progressed to hit an intraday high of 18,184. The index closed at 18,165, up 112 points. The rally was supported by metal, banking and financial services, pharma, select FMCG and IT stocks. Nifty has extended the uptrend for the second consecutive session and given a decisive close above 50 DEMA (Day Exponential Moving Average - around 18,100) with above average volumes, forming a decent bullish candle on the daily charts, making higher high higher low formation for the fourth consecutive session. Breakout above 18,200 could trigger a fresh round of longs. But 18250 could be a hurdle for further move. If this upmove continues, 18300, next swing high can be next stop. Let's hope for the best. The declining volatility has also given comfort to bulls. India VIX, the fear index, was down by 1.49 percent from 14.59 to 14.37 levels. Lower the Vix, higher the trend. Looking to option chain, max call have been written at 18300, followed by 18200. While, maximumpp put writiers are at 18000 / 17900.
Bank nifty has formed a bullish candle on the daily scale with a higher high higher low formation and has seen good buying interest near to 42,100 level. Overall, it has been moving within the band of Mother Candle generated on January 10th . Hence overall, it need to give a strong closing above 42,700 level for further upside over 43,000 mark....
It looks that, market is under positive impression of upcoming union Budget, which is likely to be popular as nine state elections are in a row.
That's it for the day and signing off for the day 💐