Nifty, Bank Nifty bias remains positive. Key factors to watch out for

It was a back-to-back second week of a stellar week on Dalal street and what an outstanding month it was with a gain of almost 9% for both Nifty and Sensex thanks to the recovery in global markets, buying by FIIs, short covering, and better than expected Q1 earnings.

This week traders will be busy with domestic cues where the outcome of the RBI policy will be the most important event after the 75 basis rate hike by the US Fed. Apart from this, monthly auto sales numbers and the next batch of Q1 earnings will be other important domestic factors to drive the market. The market will also have an eye on the direction of global markets, crude oil, and the dollar index.

Technically, the Nifty is in strong bullish momentum and managed to close above its 200-DMA which has opened the door for the 17700 level however 17330-17475 is an immediate resistance zone. On the downside, 200-DMA at 17000 is an immediate support level then 16800-16650 will be a major demand zone.

Bank Nifty is also continuing its bullish momentum where 38000/38700 are immediate resistance levels. On the downside, 36800/36400 will be immediate support levels.

If we talk about the derivative data then long exposure of FIIs in index future jumped above 60% whereas put call ratio is trading at 1.32 level, both indicating a positive bias in the market.

Santosh Meena is Head of Research, Swastika Investmart Ltd