The market managed to register its highest ever weekly close slightly below 15,900 for the week ended June 25.

In our previous weekly commentary, we had advocated some caution considering the formation of the hanging man pattern on the weekly chart. To activate this, the prices should have slipped below 15,450, but since it reversed from 15,500, the pattern was not confirmed.

Also, we had shared our observation on the placement of the Nifty Midcap 50 index around some crucial levels. All these negative developments have not been completely negated yet, but with the kind of up move we witnessed in Bank Nifty last Friday, the bulls seem to have the upper hand here. Hence, banking becomes a deciding factor going ahead.

A follow-up move in the coming sessions may push the Nifty towards its much-awaited milestone of 16,000 which may even extend towards 16,200 later.

Hence, it would be interesting to see how things pan out in the banking space. As far as supports are concerned, the immediate levels are placed at 15,700 – 15,670 and the base is to be seen at 15,450 now.

As long as the market defends these important supports, the short-term trend remains bullish. But having said that, we would still reiterate that one should avoid being complacent and it’s better to continue with the strategy of one step at a time.

Although it’s difficult to time it, whenever any rally overstretches without giving any meaningful correction, the market tends to surprise you anytime. So to be on the safer side, try to avoid aggressive leveraged positions overnight.