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After a smooth rally of more than 400 points in the last three trading sessions, benchmark index Nifty has unfolded the next leg of an up-move after witnessing a breakout of the consolation range of 10,600–10,900
levels.

Nifty on July 22 opened with marginal gains and traded in a narrow range throughout the day.

As we had witnessed a significant rally in Nifty, some profit-booking ahead of the weekly expiry was expected.

Exhaustion of bulls was witnessed throughout the day though Reliance continued to support the market and in the process managed to cross above Rs 2,000.

The advance-decline ratio had been in favour of bulls for the past three trading sessions which adds to the confirmation for the ongoing up-trend.

The banking index seems to have regained strength which should lead the movement in the forthcoming week.

The short and medium-term trend of the banking index is positive as it is trading above (21, 50 and 100- day) exponential moving averages on the daily interval.