After numerous efforts in recent months, the Nifty finally broke beyond the important psychological barrier of 16,000 on August 3.
Call writers were spotted unwinding their positions around the 16,000 strike, while Put writers added huge open interest at the 15,900 and 16,000 strikes, signalling the breakout.
Domestic equities hit new highs thanks to strong purchasing across the board.
SBI, ICICI Bank, ACC, HDFC, Axis Bank, and the Bajaj twins saw significant purchasing activity, propelling the Indian market to new highs.
On the technical front, the Nifty has broken out again on the charts after nearly two months of consolidation in the 15,500-15,900 zone.
We expect the trend to continue in the following sessions, with targets of 16,350-16,400.
From here, we expect Bank Nifty to join the rally and rise towards 35,800 levels. However, on the upside, 36,000 will operate as a powerful barrier for the banking index once more.