Published on 12/01/2018 9:07:18 AM | Source: Angel Broking Pvt Ltd
The intraday supports for the Nifty Bank index are placed around 25525 and 25420 - Angel Broking
Sensex (34503) / Nifty (10651)
Yet another lethargic day for our market concluded with individual stocks moving on their own. However, unlike previous couple of days, yesterday we saw Nifty trading with a positive bias for the major part to eventually register a new close at the 10650 mark. There was no specific pocket stood out or had an eye catching move; in fact, the day belongs to some random stocks in either direction.
For the third consecutive day, we saw index gyrating within the mentioned range of 10660 – 10588. When index starts respecting particular levels on multiple occasions, we tend to see volatility increasing soon along with the higher probability of breaking out from the congestion zone in either direction. Having said that looking at the sheer underperformance from the banking space, we expect benchmarks to find some profit booking at higher levels and hence, we do not expect the similar kind of force to get in if index manages to surpass the upper range. Thus, traders need to keep a close eye on this possibility and should rather position themselves accordingly. In our previous article, we had highlighted about the strong move seen in ‘IT’ conglomerates. Yesterday, ‘TCS’ remained muted after a decent rally but its other heavyweight peers like ‘Infy’ and ‘Tech Mahindra’ witnessed some catch up rally. Also, very much on expected lines, the ‘Metal’ pack is showing some fatigue and hence, one needs to keep booking profits in names like, Vedanta, Tata Steel and Hindalco.
Nifty Bank Outlook - (25661)
The Nifty Bank consolidated in a narrow range in yesterday's session and ended the day with marginal gains. While the index is still in a consolidation phase, there has been more stock specific momentum within this sector. Yesterday's outperformer amongst the banking sector was 'IDFC Bank' which rallied by more than 8%, and has given returns of more than 25% in this month on the back of its merger talks with 'Capital First'. Such stock specific momentum is expected to continue owing to the outcome of the Q3 results also. Hence, we continue with our advice for traders to take a stock specific approach till the index trades below the resistance of 25800. The intraday supports for the Nifty Bank index are placed around 25525 and 25420 whereas resistance is seen around 25780- 25800.
To Read Complete Report & Disclaimer Click Here
Click here to open demat account
For More Angel Broking Pvt Ltd Disclaimer http://www.angelsecurities.in/disclaimer.aspx
Views express by all participants are for information & acadamic purpose only. Kindly read disclaimer before refering below views. Click Here For Disclaimer