Weekly Market Outlook - Mr. Rakesh Tarway, Head of Research, Reliance Securities

'NIFTY ended last week up by 1.2% as they saw some profit booking ahead of the budget on the first two days, but a sharp up move post budget set the tone for broader market movements and high beta sectors like PSU Banks and Realty gained by 6.5% and 5% respectively. Auto and Energy saw some profit booking ending flat, while IT sector continue to trade lower with decline of 1.5% on the fears of hike in costs of H1B visa. Midcaps and Small caps also gained by ~ 2.8% for the week.

As the up move is sharp across sectors we believe NIFTY could see some amount of consolidation at current levels resisting to cross 8900-8950 on the higher side. Option data is suggesting a strong resistance at levels of around 8,950 to 9,000. On downside, good support is observed around level of 8,500 that should not be breached to hold the above view.

In line with our overall view,the outlook for Bank NIFTY continues to remain positive with the credit policy lined up in the middle of the week, which would provide the next level of direction from current levels. A close above 20,600, which was the last year high could set Bank NIFTY up for exciting times to cross the all time high of 20,900. On downside, a breach below crucial support level of 19,600 may trigger a sharp profit booking in the banking sector.'

Source : Equity Bulls

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