Published on 19/05/2017 9:13:15 AM | Source: Angel Broking Pvt Ltd
The intraday supports for the Nifty Bank index are placed around 22578 and 22475 - Angel Broking
Sensex (30435) / Nifty (9429)
Yesterday, for the first time after March 22nd, our markets opened lower with a decent margin and eventually ended with a sharp cut of nearly 100 points on Nifty. Clearly, this was a rub off effect from the US bourses as we saw key indices there plunged overnight on the back of some political concerns with respect to their president Mr. Donald Trump.
Honestly speaking, we were not expecting this early morning damage to get escalated to such an extent. Now, technically speaking, we would continue with the positive bias as long as Nifty manages to hold the important support of 9372. Only a sustainable move below this level would apply brakes on ongoing optimism. However, as of now, we do not want enter this bandwagon. We would rather expect the index to reclaim the 9500 mark soon. Traders are advised not to take aggressive positions in the market and one needs to be very selective while picking individual stocks as the stock specific damage seen yesterday was quite threatening. Further, we would like to highlight that such kind of corrective days are evident now as markets have already rallied quite a lot and hence, one should not get too much worried of such developments in the market.
Nifty Bank Outlook - (22699)
The Nifty Bank index too opened gap down yesterday and traded with negative bias throughout the session. The index eventually ended the session with a loss of over a percent.
If we observe the daily chart of Nifty Bank index, it is seen that every corrective move in the Nifty Bank index in this calendar year have managed to take support near its '20 DEMA'. The price structure has not shown any indication of a reversal of the broader trend and hence, this could just be a corrective move within an uptrend. The '20 DEMA' for the index is placed around 22475, which should act as a crucial support. The risk reward ratio for fresh longs would be favorable around the mentioned support and thus traders should strategize the trades accordingly. The intraday supports for the Nifty Bank index are placed around 22578 and 22475 whereas resistances are seen around 22835 and 23000.
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