F&O Talk| Expect consolidation breakout in Nifty above 23,500, buy on dips: Sudeep Shah of SBI Securities

economictimes.indiatimes.com:

Nifty ended the week with a closing near its upward-moving channel. The index closed at 23,465, after making a new all-time high on Friday. On the other hand, Bank Nifty is still somewhere in the middle of its upward channel, giving a close at 50,002.

The post-election rally has taken everyone by surprise and both indices now are currently sustaining well above their short-term moving averages after testing their 200 day moving averages.

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As the markets move towards making new highs frequently, ET Markets interacted with analyst Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research, SBI Securities regarding the outlook on Nifty and Bank Nifty along with an index strategy for the upcoming week. Following are the edited excerpts from his chat:

The markets are making new highs almost each day now. Do you think the indices are headed towards a swift northward movement, or will it become steady in the near future?

Markets experienced an extremely swift recovery last week from the lows of 21,281 made on the day of Election verdict with more than 2,000 points rebound in a very short span of time. While the overall undertone is extremely bullish, we anticipate that the markets may enter a period of time-wise correction and witness buying on dips, with