Last week we had cautioned that Nifty can run into a correction after testing 19,000. But on the contrary Nifty has surged closed well above 19,000. So, if this break sustains then there is more room to rise from here. So, our view of seeing a correction will go wrong.
Nifty Bank index has also surged well above 44,000. Our bearish view of seeing a fall to 42,000 has gone wrong. Nifty Bank index can also rise further from here.
So overall, there is room for the indices to move further up from here before a correction kicks in.
Nifty can rise to 19,600-19,700 while it sustains above 19,000 now. From a long-term picture 20,200 is a crucial resistance that can halt the current rally.
Nifty Bank index can rise to 45,500-45,700 while it sustains above 44,000
Dow Jones is bullish to see a rise to 34,800-35,000 initially and then to 35,500 eventually. A break above 34,500 can trigger this rise.