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Published on 9/10/2019 9:45:42 AM | Source: Angel Broking Pvt Ltd

The Bank Nifty has retracement support around 27530 - Angel Broking

Posted in Market Outlook| #Market Outlook #Angel Broking Pvt Ltd

Sensex (37532) / Nifty (11126)

On Monday, Nifty started on a mild positive note however the rub-off effect from the previous session immediately pulled Index lower. Subsequently, Index managed to hold on to the key support levels to trigger an intraday bounce back. Eventually in the penultimate hour Index once again witnessed a sell-off to end with a loss of 0.43% at 11126.

On the daily chart, Index for the sixth consecutive session ended in red and is now approaching the key levels at 11100-11060 which is a confluence zone formed by previous bullish breakout level and 61.8% retracement level of the recent sharp upmove (10670-11695). Going ahead, it will be crucial how Index reacts around these crucial levels as a break below the same can open doors for further weakness testing levels below 11000 mark. On the flip side, previous support around 11250 can now act as an immediate resistance. The volatility has certainly spiked up in the last few sessions and hence traders are advised to be agile on stock picking and avoid undue risk.

 

Nifty Bank Outlook - (27767)

In Monday's session, the BankNifty showed a pullback move in the first hour of the trade and rallied higher by more than 400 points. The index then consolidated for most part of the session and gave up all the gains in the last hour of the trade to end the day back around the previous sessions close.

As mentioned in our previous report, the BankNifty has retracement support around 27530 and as the momentum readings on the lower time frame chart were in oversold zone, the index showed some upmove in the opening hour on Monday. However, the first hour strength was sold into due to lack of any follow up move and thus the index gave up the intraday gains. For near term, the 27530 is a crucial support which if breached, could lead to a continuation of the negative momentum towards 27135. On the flipside,28185 will now be seen as an important level which needs to be crossed to regain some momentum on the upside.

 

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