Nifty continues to move up and is heading up towards 19,000 in line with our expectation. Nifty Bank index on the other hand seems to be struggling to gain momentum. Even Nifty is coming closer towards a very crucial resistance which can halt the current rally and trigger a corrective fall. So, we will have to tone down our bullishness in the coming weeks.
Broadly, the Indian benchmark indices could be coming close to a pitstop.
Nifty has a crucial resistance at 19,100 where the current rally can pause. A corrective fall to 18,600 can be seen before a fresh leg of upmove begins to target 20,000 levels.
Nifty Bank has to sustain the bounce seen on Friday and breach 44,450 from here. Only then the rise to 45,000 and 45,500 will come back into the picture.
Dow Jones has support at 34,200 and 34,000. It can rise to 35,500 on a sustained break above 34,500.