The Breakout
Nifty 50 finally breached the crucial 23,000 level today, closing at 23,124 with strong volumes. This breakout comes after three weeks of consolidation near the 22,800-22,950 range.
Technical View
- Immediate Resistance: 23,250 | 23,400
- Support Levels: 22,950 | 22,800
- RSI: 68 (approaching overbought)
- MACD: Bullish crossover confirmed
Sector Performance
The rally was broad-based with participation from multiple sectors:
- Banking: HDFC Bank and ICICI Bank led the charge with 2%+ gains
- IT: TCS and Infosys showing strength on positive US market cues
- Auto: Tata Motors hits all-time high on strong EV sales data
- Metals: Profit booking seen after recent rally
FII/DII Activity
- FII: Net buyers at ₹2,450 Cr
- DII: Net buyers at ₹890 Cr
Consistent FII buying over the past week has been a key driver of this breakout.
What to Watch Next Week
- US Fed commentary on rate trajectory
- Q3 earnings from remaining Nifty companies
- Global crude oil prices
- INR/USD movement near 83 levels
Our Take
The breakout looks genuine with volume confirmation. However, RSI nearing overbought territory suggests a minor pullback to 22,950-23,000 could offer better entry points. Long-term trend remains bullish - use dips to accumulate quality stocks.
Disclaimer: This is not investment advice. Please consult your financial advisor before making investment decisions.