Sensex, Nifty likely to hit all-time high; Nifty Bank may lead the rally

Nifty Bank, in particular, has emerged as the front runner of the reversal rally. The banking index has gained 6.60 per cent and overcame vital hurdles in the recent sessions.

Domestic benchmark indices have flaunted a spirited rebound since the end of March this year. In last ten sessions, the BSE Sensex has surged almost 5 per cent, while Nifty 50 has spiked 5 per cent 

This big rally, in fewer sessions, has restored the optimistic sentiment that the market was missing since the indices hit all-time high in last December. During this robust up move, the traders and investors underwent extreme volatility and unpredictable scenarios. 

Among key benchmark indices, Nifty Bank remains the top gainer rising over 50% of the fall, with a conclusive trendline breakout. 

Nifty Bank, in particular, has emerged as the front runner of the reversal rally. The banking index has gained 6.60 per cent and overcame vital hurdles.

While BSE Sensex and Nifty 50 traded on a sluggish note on Monday and reflecting similar mood today, the Nifty Bank index is reluctant to slow down, and is up 0.40 per cent. 

Thus, the current sentiment reveals a texture geared at reaching new historic peaks. Will that happen? To answer this lets consider the technical outlook:-

S&P BSE SENSEX

Likely target: 64,000

Upside potential: 6%

The index is presently hovering close to the 60,335 mark, its 50% Fibonacci retracement, a sign of a struggle to march further. A follow-up buying shall trigger next upside towards 62,216-mark.

The overall trend is bullish as long as the index until 58,000 is protected. The immediate support for the upward trend exists at 59,200 levels. 

The bull-run is headed in the direction of 64,000 level, which will mark a new historic peak for the index. CLICK HERE FOR THE CHART

NIFTY50

Likely target: 18,445 and 19,000

Upside potential: 3.50% to 6.60%

While the current texture reflects a robust sentiment, the follow-up momentum shall emerge once the 50% retracement is crossed. The 50% Fibonacci retracement comes to 17,857-mark. 

However, the trend shall remain on positive note, as the trendline breakout of the “Falling channel” has nullified any negative aggression. The support for the index exists at 17,100 and until this mark does not get breached, the higher levels are expected to emerge in coming sessions.

Once 50% retracement is conquered, the index shall aim at 18,445 and thereafter towards a new historic peak of 19,000 levels. CLICK HERE FOR THE CHART

NIFTYBANK

Likely target: 45,000

Upside potential: 7%

Nifty Bank has decisively crossed the 50% Fibonacci retracement of the total fall from 44,120-mark, its all-time high to the most recent low of 38,613. This resilient move has wrecked the falling trend line barrier existed at 41,250, further reinforcing the positive bias. 

The immediate hurdle is placed at 43,000 mark, its 78.60% retracement. Once that gets surpassed, the index shall hit new historic peak reaching 45,000 levels.  The present upward bias continues to stay elevated unless 40,700-mark is breached, its 38.20% retracement. CLICK HERE FOR THE CHART