Sensex can hit 51,000 levels in six months, technical charts suggest

Markets continued its record-breaking streak on Friday as the benchmark indices, S&P BSE Sensex and NSE's Nifty, scaled fresh lifetime highs during the day after the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 4 per cent and maintained an accommodative policy stance.

The S&P BSE Sensex hit a record high on Friday and breached 45,000 mark to hit a high of 45,033.19 in intra-day deals. From their March 2020 lows, it has mostly been a one-way street for the Indian equity markets The S&P BSE Sensex has rallied a huge 76 per cent since then on the back of foreign investor flows.

The November derivatives series that ended last week proved to be one of the best-ever for the markets. The Nifty rose 11.6 per cent, while the Bank Nifty added 22.8 per cent. 

Despite stellar gains, the rollover into the December series for the Nifty were higher than the previous month, an indication that the bulls were still in control. READ ABOUT IT HERE

So, what lies ahead for the markets? Does the current market rally have more legs? Here's what charts suggest.

S&P BSE SENSEX:  The index has gradually absorbed the selling pressure around 43,700 and 44,200 levels. Now at 45,000 mark, the Sensex needs to consolidate gains if the rally has to resume. Post consolidation, the index can head towards 47,000 levels. From a six-month perspective, the Sensex looks set to conquer 51,000 levels. On the downside, the index needs to hold 43,000 levels. Although there is divergence on the Relative Strength Index (RSI), yet the index is not showing any substantial weakness. That said, from a fundamental perspective, the up move in stock market needs to be adequately supported by flows into equity as an asset class and a pick up in the economy going ahead.  CLICK HERE FOR THE CHART
 
NIFTY50: After crossing 12,750 levels, the upside momentum in the index has slowed. It did witness a period of uncertainity around the 13,100 levels but was able to overcome this mild resistance. The recent move above 13,200 levels can take the index towards 13,500 and then towards 13,800 levels. Till the index defends the 12,900 mark decisively, the upside rally may even see 14,000 in a medium-term perspective. However, be prepared for intermittent corrections. CLICK HERE FOR THE CHART
 
NIFTYBANK:  As per the daily chart, Nifty Bank faces resistance at 30,000 levels. On the downside, 29,000 stays as the support on an immediate basis. A close above 30,000 may see the index rally towards 32,000 and then 33,500 levels. CLICK HERE FOR THE CHART