Nifty has rallied over 300 points in the past two weeks and has carried forward the momentum swiftly. After being stuck in a consolidation phase for the past two months Nifty is once again on the verge of a Channel Pattern breakout on daily chart.

A close above the 10178 mark on closing basis would confirm the same which would then see another 400-450 point upside for the Nifty.

Bank Nifty has been a big contributor to Friday’s smart rally which was missing from past many days. Bank Nifty seems to have just begun its upswing and the next leg of rally is likely to be led by the banks.

Although one cannot ignore the ongoing results season which may bring some hiccups specially the PSU Banks. But the overall set up at current juncture is indicating that there is still more room of around 300-400 points for the bank Nifty before the index hits hurdle of 25100 mark.

The Nifty Metal index too has broken out from a continuation pattern on the daily chart as its constituents like Tata Steel, VEDL and Hindalco also are indicating bullish bias.

If the index manages to sustain above the 3760 mark on closing basis it would then aid the Metal index move higher towards the 3850-3870 zone going forward.

Source:indiainfoline.com