Technical Outlook for CNX Nifty
After a pause in the September month, the benchmark index, CNX Nifty, resumed its overall uptrend and made a new record high at 8330.75 in the month of October. Strong recovery in the global markets alongside with positive cues from the earning front helped index to gain more than four percent on monthly basis.
Keeping in mind the overall market conditions on both domestic & global front, we believe this positive bias would extend further in November month. As per the Fibonacci extension (projection tool in technical analysis) placed on monthly chart, the Nifty has cross the major hurdle around 8200 and now it has potential to scale to 8700. So, one should uphold buy on dips approach but maintain extra caution in stock selection.
Sector wise Power, Oil and gas and banks have seen consistent long build up and good delivery based buying. Banks have seen huge long build up since last four trading sessions. Oil n gas has been showing good delivery buying especially in scrip like Reliance at a weighted average of around 952. In power sector NTPC, TATA Power has seen good delivery based accumulation.