Dalal Street Week Ahead: Bullish Momentum Continues with Caution
As Dalal Street closes another strong week, technical charts suggest sustained bullish momentum despite signs of mild fatigue. Investors remain optimistic as Nifty 50 and Bank Nifty hold key levels, with sectoral rotations offering fresh opportunities. Here’s a detailed outlook for the week ahead.
Nifty 50: Bullish Trend Intact but Overbought
The Nifty 50 ended the week firmly above 22,500, supported by FII inflows, stable macros, and robust earnings.
Key Technical Indicators:
✔ Trend Support: Trading above 20 & 50-DMAs confirms short-to-medium-term strength.
✔ RSI Warning: Near 70 (overbought), suggesting caution but no immediate reversal.
✔ Critical Levels:
– Support: 22,300-22,400
– Resistance: 22,800 (ATH)
Outlook: The uptrend remains intact unless Nifty breaks below 22,300. Dips are likely buying opportunities.
Bank Nifty: Consolidation Before Breakout?
The banking index has lagged but shows potential for a rally if it clears 48,300.
Key Observations:
✔ Range-Bound: Stuck between 47,000-48,300 for weeks.
✔ Neutral RSI (60): Room for upside if resistance breaks.
Outlook: A close above 48,300 could trigger a rally towards 50,000, led by private banks.
Sectoral Spotlight: IT and Auto Shine
✔ IT Stocks: Gaining momentum amid weaker dollar and global tech recovery.
✔ Auto Sector: Strong sales and festive demand keep stocks attractive.
FIIs vs. DIIs: Who’s Fueling the Rally?
- FIIs: Turned net buyers in May after months of selling.
- DIIs: Consistently supporting markets, reducing downside risks.
Triggers to Watch:
– US Fed rate-cut signals
– Domestic inflation (CPI/WPI) data
– Late Q4 earnings reactions
Trading Strategy: Buy Dips, Avoid FOMO
While the trend is bullish, overbought conditions call for selective buying:
✔ Focus on large-caps and high-conviction mid-caps.
✔ Avoid chasing overextended stocks.
Key Levels:
| Index | Support | Resistance |
|——–|————|————–|
| Nifty | 22,300 | 22,800 |
| Bank Nifty | 47,000 | 48,300 |
Final Takeaway
Dalal Street’s rally isn’t over yet, but tactical caution is advised. Watch global cues, sector shifts, and institutional flows for June’s trajectory.
For real-time market insights, follow [Your Publication Name]!
