The broader markets gained on Monday, with the NSE Nifty 50 hitting the 24,600-mark. Analysts expect the market to rise further and urged investors to use any dip as an opportunity to buy.
“From a technical standpoint, the zone encompassing the golden ratio, denoted by 24,610, is likely to be seen as the pivot zone, and a sustainable breakthrough could only boost further momentum,” Osho Krishan, senior analyst-technical and derivatives at Angel One Ltd., told NDTV Profit.
The index has formed a doji candlestick pattern at a record level, according to Aditya Gaggar, director of Progressive Shares. This indicates a reversal but considering a strong uptrend if any correction takes place, then it will be considered as a buying opportunity, he said.
Looking at the “complete revival” in state-run banks, Hemen Kapadia, senior vice president of institutional equity at KR Choksey Stocks and Securities, said if this transfers to the private lenders, then it’s not a “bad time” to go long on Nifty Bank index.
Hrishikesh Yedve, AVP technical and derivatives research at Asit C Mehta Investment Intermediates Ltd., said a buy-on-dips strategy should be adopted in the Bank Nifty as long as the index holds above 51,750. “52,800 and 53,000 will serve as strong resistance levels on the upside,” Yedve said.
While all the major sectors were in the green, Nifty IT closed lower on Monday. Kapadia said the index is facing some resistance, but it’s on the cusp of a breakout. He also said the technical set-up looks positive for the Nifty IT index and a close above the all-time high will help the index grow.