A volatile trading session ended on positive note. After elections outcome, markets is in consolidation face and shifted its focus towards macro data , onset of monsoon , events like RBI Monetary Policy slated next week (6th June ) and also on Union budget . On global front, US-China trade wars along with rise in Oil price will determine further trend of the market. We continue to remain optimistic, as the new government is expected to continue with its infrastructure thrust and focus on rural schemes. The indices ended higher in the consolidation day. The Sensex was up 66 points at 39749, while Nifty was up 16 points at 11941.
While the market gains could extend in the coming sessions, we prefer to remain cautious at higher levels. Further, domestic macro data like Q4 GDP data and infrastructure output (scheduled this week) and RBI’s monetary policy (on June 6th) will dictate further market trend in the coming weeks. Global developments, especially progress on US-China trade talks will also induce high volatility. The nifty formed a bullish candle on the daily scale and needs to hold above 11900 to extend gains towards 12000, and then 12100 -12200 zone. Overall setup and momentum is positive and a hold of recent zones could extend rally, while support exists at 11850 and then 11800 levels. It has been making higher top and higher bottom formation and supports are gradually shifting higher with medium term support at 11650.