Moving on the expected lines, the Indian equity market staged a strong breakout as Nifty once again settled near 17,000, ending a new lifetime high. The market opened with a positive trend. With this, the Nifty opened with a boom. It got stronger as the day progressed. The index saw a steady rise throughout the day, as it continued to make incremental highs.
The market showed no signs of any intention to correct or withdraw at any level. It managed to end the day near its high point with a strong gain of 225 points or 1.35 percent.
The market has staged a strong breakout, and in the process, extended its support level to the 16,650-16,700 area. The market boom was secular as it was spread across all sectors. Bank Nifty, which had been lagging so far, also ended stronger as it started playing catchup on expected lines.
Volatility remained virtually unchanged with India VIX falling only 0.65 percent. In the event of any consolidation, the 16,650-16,700 area will now act as immediate short-term support for the market. The current technical setup suggests that the chances of Nifty testing the 17k mark have increased.
Tuesday’s session may once again have a positive start, and the 16,690 and 17,045 levels could act as immediate potential resistance points. Support should come at 16,865 and 16,810 levels.