Big breakout in Nifty pushes index towards 10700; Bank Nifty also come out from range and could also participate in rally; rupee weakness may help Pharma and IT stocks to outperform.
Nifty index opened gap up and continued to witness buying interest, which lifted it towards 10719. It gives the consolidation breakout from its trading range between 10500 and 10640 in last 8 sessions.
Nifty completed its 61.8% retracement at 10707 from its down leg from 11171 to 9951.
Now, it has to hold above 10640 to extend its move towards 10737 then 10800 while supports are seen at 10580 then 10550.
Bank Nifty opened positive and witnesses sustained buying interest for the entire session and gained by more than 400 points. It’s also comfortably settle above crucial resistance of 25250.
As long as it holds above 25250, it can extend its move towards 25700 and 25850 then 26000, while support is seen at 25100.